October 16, 2023 (NO COMMENTS)

The share of credit exposures attracting no capital charge at the eight US systemic banks fell to 35.2% in the second quarter ­– 130 basis points lower than in Q1 and the lowest since March 2020. On aggregate, exposures carrying zero risk-weight under the standardised approach dropped $102.1 billion to $3.44 trillion. JP Morgan drove the trend, shedding $65.1 billion of riskless assets over the three months to end-June. This reduced the bank’s share of the 0% risk-weight bucket by 460bp