Large Bank Examination Workshop February 2026

Evolution of RWA • The risk weights under Basel II were substantially more granular than those under Basel I • The risk weights under Basel III are even more complex and product-specific, especially for structured products  Risk weights for all assets is nine pages long

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Knowledge Check Why do residential mortgages have a lower risk weight than other loans? a) Mortgage borrowers are better credits

b) Commercial loans are larger c) Mortgages require collateral

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