Risk weighted assets

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Updated: Aug 20, 2021

The estimated value of assets of a bank adjusted for risk. This is calculated as the weighted sum of all assets on the balance sheet of the bank, with the weights for each underlying asset corresponding to its risk. The weights are determined according to the approach developed by the Basel Committee of the Bank for International Settlements.

Reference: Oxford Press Dictonary of Economics, 5th edt.



Sources & references
Risk disclaimer
James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.