trending Market Intelligence /marketintelligence/en/news-insights/trending/VY7kxlPGJct2-DGRmDYDpg2 content esgSubNav
In This List

Coventry Building Society lowers CET1 ratio over asset calculation error

Blog

Banking Essentials Newsletter: July Edition - Part 2

Blog

Anticipate the Unknown Go Beyond Fundamentals to Uncover Early Signs of Private Company Credit Deterioration

Blog

Taking Loss Given Default Estimation to the Next Level: An Aspiration for All Creditors, Not Just Banks

Blog

Anticipate the Unknown A Fundamentals Approach to Detect Early Signs of Private Company Credit Deterioration


Coventry Building Society lowers CET1 ratio over asset calculation error

Coventry Building Society lowered its common equity Tier 1 ratio as of June 30 by 1.6 percentage points to 32.6% from 34.2% after it found that it had mistakenly calculated its risk-weighted assets.

The company said that while updating internal ratings-based models it uses to calculate RWAs, it found that it failed to apply the necessary 6% scalar to the core model outputs, which would have increased its total RWAs by 4.6%.

Despite the error, the building society said it expects its CET1 ratio to reflect a considerable capital surplus above regulatory requirements, noting that the change will not affect its leverage ratio, which the company expects to be its binding capital measure in the future.