Risk-weighted assets are computed by dividing a bank's total assets into four categories according to their level of riskiness, then multiplying the value of assets in each group by a risk weight and summing all the groups.
What does RWA stand for?
RWA stands for Risk-Weighted Assets
This definition appears very frequently and is found in the following Acronym Finder categories:
- Business, finance, etc.
See other definitions of RWA
We have 85 other meanings of RWA in our Acronym Attic
- Reimbursable Work Authorization
- Relative Wavelength Accuracy (Agilent)
- Relative Wind Angle
- Remote Web Access (Microsoft)
- Remote Worksite Allowance
- Resident Welfare Association (India)
- Return Without Action
- Richard Winn Academy (Winnsboro, SC)
- Right Wing America (politics)
- Right Wing Authoritarianism (psychology)
- Road Warrior Athletics (Chicago, IL clothing store)
- Romance Writers of America
- Rook- en Warmteafvoer (Dutch: Smoke and Heat; extraction system)
- Rotary-Wing Aircraft
- Rotating Wave Approximation
- Routing and Wavelength Assignment
- Royal West Academy (Montreal, Canada)
- Royal West of England Academy of Art (Bristol, England)
- Rush\Wright Associates (landscape architects)
Samples in periodicals archive:
Total risk-weighted assets were up two per cent to EGP 56.
In an announcement regarding the new capital rules, the Financial Supervisory Commission said that Taiwanese banks would be required to hold at least 7 percent of common equity of risk-weighted assets.
The minimum capital requirement reflected a percentage of risk-weighted assets of the bank.
Stated simply, the Basel Capital Accord requires that a bank have available as "regulatory capital" (through combinations of equity, loan-loss reserves, subordinated debt, and other accepted instruments) at least 8 percent of the value of its risk-weighted assets (loans and securities, for example) and asset-equivalent off-balance-sheet exposures (such as loan commitments, standby letters of credit, and obligations on derivatives contracts).
We use a simple ratio--the ratio of a bank's risk-weighted assets to its total assets--as a proxy for the riskiness of the bank's portfolio.