Key facts
- Internally modelled risk-weighted assets (RWAs) at the largest US banks diverged further from the standardized model in Q2 2026.
Risk-weighted assets calculated using internal models at large US banks widened the gap with regulator-set standardized models in Q2 2026. Wells Fargo and Bank of America showed the largest discrepancies.
The widening gap between internally modelled and standardized risk-weighted assets at major US banks could signal potential regulatory arbitrage or differing interpretations of risk, impacting capital requirements and financial stability assessments.
Internally modelled risk-weighted assets (RWAs) at the largest US banks diverged further from the standardized model in the second quarter of 2026 than at any point in the past four years. Overall, US global systemically important banks (G-Sibs) disclosed $7.79 trillion in RWAs under the advanced approach, which uses banks’ internal models to calculate exposures. By comparison, RWAs totalled $8.23 trillion under the standardized approach, indicating a gap of $441 billion.