What Are Risk-Weighted Assets?

Risk-weighted assets refer to assets classified by banks, different risk coefficients are determined according to the risk nature of different types of assets, and assets obtained by taking this risk coefficient as a weight Many assets in the banking industry have zero risk weights, and many risk weights are high. This depends on the allocation of the asset-liability structure of each bank. Generally speaking, the higher the risk weight, the higher the return. For a detailed list of risk weights, you need to consult the central bank and the CBRC on bank capital adequacy ratio management measures. For example, Treasury bonds have a zero risk weight, foreign government bonds with a rating below AA- are 100%, and corporate debt in countries with a rating above AA- are 50%.

Risk-weighted assets

Project weight

1 cash assets

1.1 cash 0%

1.2 Gold 0%

1.3 Deposits from the People's Bank of China 0%

2 Claims on government and central bank

2.1 Claims on China's Central Government 0%

2.2 Claims on the People's Bank of China 0%

2.3 Debt to central governments and central banks of countries and regions rated AA- or above (including AA-) 0%

2.4 20% of the claims of central governments and central banks of countries and regions with ratings below AA- and above A- (including A-)

2.5 50% of the claims of central governments and central banks of countries and regions with ratings below A- and above BBB- (including BBB-)

2.6 100% of the claims of the central government and the central bank of countries and regions with a rating of BBB- or lower and B- or higher

2.7 150% of central government and central bank claims on countries and regions rated B-

2.8 100% of central government and central bank claims on unrated countries and regions

3 Claims on China's Commercial Banks

3.1 Claims on China's Policy Banks 0%

3.2 Claims on Financial Asset Management Companies Invested by the Central Government of China

3.2.1 The bonds issued by financial asset management companies invested by the central government of China for the purchase of non-performing loans of state-owned banks 0% 1

3.2.2 Other claims on financial asset management companies invested by China's central government

3.3 25% of claims on other commercial banks in China

3.4 Subordinated claims on other commercial banks in China (without deductions) 100%

3.5 100% of claims on other financial institutions in China

4 Claims on registered financial institutions in other countries

4.1 25% of claims on commercial banks registered in countries and regions rated AA- and above

4.2 50% of the creditor's rights of commercial banks registered in countries and regions with ratings below AA- and above A- (including A-)

4.3 100% of the creditor's rights of commercial banks registered in countries and regions with ratings below A- and above B- (including B-)

4.4 150% of claims on commercial banks registered in the following countries and regions rated B-

4.5 100% of claims on commercial banks registered in unrated countries and regions

4.6 Claims on Multilateral Development Bank, International Settlement Bank and International Monetary Fund 0%

4.7 Claims on other financial institutions 100

(1) For credit risk assets, commercial banks can use internal rating method, external rating method and standard method to calculate;

Credit risk weighted assets are a measure of the total amount of credit risk that an asset portfolio or a single asset is exposed to. Classify the bank's credit risk assets and determine different assets based on different asset classes

In order to reflect the overall risk level, different

The measurement of risk-weighted assets is determined by two factors:

(1) Credit risk exposure of each asset in the bank's asset portfolio;

(2) These credit risks are exposed to the possibility of credit losses in the future.

Some bank assets, such as debt issued by the government of the bank s base currency in the bank s base currency, are defined as having no credit risk. Therefore, the risk weight of this type of credit asset of the bank is 0 and no credit risk asset requirements are assumed. However, most loans and other bank assets are claims on institutions with certain credit risk, which may incur potential credit losses.