Coventry missed out part of RWA calculation
Even the best in class make mistakes. Coventry Building Society, incredibly well capitalised when compared with its banking peers, has been overstating its common equity tier one (CET1) ratio. Correcting the mistake does not affect its capital ratio greatly, but the episode raises questions over governance according to one analyst.
Coventry said on Wednesday evening that its CET1 ratio at June 30 was in fact 1.6 percentage points lower than originally reported: 32.6%, rather than 34.2%.The building society said it had found a mistake how it had historically calculated risk-weighted assets (RWAs) while updating its model for ...
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