ECB: TRIM will shave 70bp from bank capital ratios

By Tyler Davies
19 Apr 2021

The European Central Bank published the findings from its targeted review of internal models on Monday. The exercise, which could, to an extent, frontload the impact of Basel IV, is expected to result in a 12% increase in risk-weighted assets and a 71bp decline in common equity tier one ratios.

The ECB has been carrying out its targeted review of internal models (TRIM) since 2018, with the intention of exercising some control over how large banks use their internal models to calculate risk.

The supervisory authority assessed 65 banks and carried out more than 200 on-site inspections. It came ...

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