Risk-Weighted Assets
/ˈrɪskˌweɪtɪd ˈæsɛts/
Definitions
- (n.) Assets weighted by credit risk to determine regulatory capital requirements.
Banks must hold capital proportional to their risk-weighted assets to ensure financial stability.
Forms
- risk-weighted assets
- risk-weighted asset
Related terms
See also
Commentary
Risk-weighted assets are central in banking regulation to quantify the risk exposure and determine minimum capital buffers under frameworks like Basel III.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.