Under Basel rules, what is the meaning of RWA?
A) Risk Weighted Assets
B) Risk Weighted Average
C) Recovery Weighted Assets
D) Risk Weighted Adjustments

Question

Quizplus · Accepted Answer

RWA stands for Risk Weighted Assets which is a measure of the risk of a bank's assets based on their credit risk. It is calculated by multiplying each type of asset by a risk weight, with riskier assets such as corporate loans having a higher weight than less risky assets such as government securities.

Under Basel Rules, What Is the Meaning of RWA