UK and EU capital rules swell HSBC’s balance sheet by $120bn

By Owen Sanderson
08 May 2014

Switching regulatory regimes has increased HSBC’s risk-weighted assets by $122.2bn in the first quarter, as it moved to CRD IV reporting for the first time.

It has also been hit by the Bank of England’s own idiosyncratic capital treatment, with the Prudential Regulatory Authority putting capital requirement floors on low default portfolios. This accounted for $17.3bn of new RWAs. The PRA also asked HSBC to put a capital floor under its UK corporate ...

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