November 17, 2023 (NO COMMENTS)

A regulatory review of KBC Group’s internal risk models inflated its risk-weighted assets (RWAs) by €8.2 billion ($8.9 billion) in the third quarter, pushing the bank’s core capital ratio to a seven-year low. The Belgian lender’s total RWAs hit €115.3 billion at the end of September, up 5.8% on three months prior. The lion’s share of the increase stemmed from the model reviews of the bank’s Belgian corporate and small and medium enterprise credit portfolio by the European Central Bank in August