What are Risk Weighted Assets?

The Risk Weighted Assets (RWA) refer to the fund based assets such as Cash, Loans, Investments and other assets.  They are the total assets owned by the Banks, however, the value of each asset is assigned a risk weight (for example 100% for corporate loans and 50% for mortgage loans) and the credit equivalent amount of all off-balance sheet activities. Each credit equivalent amount is also assig…

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  • Ashok Kumar

    Really good….

  • manju

    lot of thanks.

  • priya

    Very nice…Thanks a lot…

  • swagata

    Itz really great…i like it a lot….thank you..it is the best gk site i have ever visited..i can easily understand its language..

  • Pranab

    Hello Everyone..

    I just want to thank to all the team members and admin for their valuable notes. I have cleared IBPS PO/MT 3 and now got appointment in Canara Bank.

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  • siri

    wonderful website,lot of thanks to writer

  • parag saurav mishra

    I would be very honest to tell , that Risk weighted asset was always very confusing to me and i was not able to understand its trades, but after going through the above notes, my picture is quite clear . Though i need to read more on that but for a beginner this is the best notes to grasp. Thank you, please accept my gratitude….

  • N Lalitha Vibhooshan

    Can anybody tell me for of he asset types how and why risk weight is assigned is more than 100%. can you please explain….

    • k.vinayak05

      becuase sometimes you take money on credit without paying collateral.. and when you happened to be a default bank loses both money and interest.. may be thats why Risk is more that 100%

  • Jainesh

    Thank you..!!