Large Bank Examination Workshop February 2026

Basel I Asset Risk Weights (Keeping it simple)

Risk Weight

Asset Class

0% Cash, gold, OECD Government obligations Claims on OECD banks, U.S. government agencies and GSEs, claims on municipalities 20% Residential mortgages 50% All other claims (consumer and commercial loans, corporate bonds, equities, emerging market sovereign debt, real estate)

100%

43

Risk Weighted Assets (RWA) Under Basel I 0  $3 million (Reserves) +0  $10 million (Treasury securities) + .20  $7 million (Agency securities) + .20  $10 million (Municipal bonds) + .50  $10 million (Residential mortgages) +1.00  $20 million (Real estate loans) +1.00  $35 million (Commercial loans)

+1.00  $5 million (Fixed assets) +1.00  $20 million (Standby LOC)

$91.4 million (Total risk-adjusted assets)

44

22

© Global Financial Markets Institute Inc.