January 23, 2024 (NO COMMENTS)

PNC Bank expects the US Federal Reserve’s Basel III endgame proposal to inflate its risk-weighted assets (RWAs) by 3.2% pro forma for end-2023 – a stark contrast to the double-digit-percentage increases decried by larger dealers.

The US’s second-largest regional bank said the upcoming reforms would have inflated RWAs for $13.4 billion, split between $3.8 billion from the re-capitalisation of accumulated other comprehensive income (AOCI) – which accrues to RWAs through the deferred tax assets