's decision to introduce risk based drivers, include amongst others, concerns that the standardized approaches to credit and … counterparty risk relied too heavily on external credit ratings, unjustified applications by banks in their use of internal model …-based approaches to drive down risk weightings, and that risk weightings generated by internal models are too complex and opaque.In its …

Historical evidence like the global financial crisis from 2007-09 highlights that sector concentration risk can play an … II consider only name concentration risk explicitly in their solvency capital requirements for asset concentration risk … and neglect sector concentration risk. We show by means of US insurers' asset holdings from 2009 to 2018 that substantial …

We show that banks' risk exposure in one asset category affects how they report regulatory risk weights for another … asset category. Specifically, banks report lower credit risk weights for their loan portfolio when they face higher risk … constraints. Our results suggest the existence of incentive spillovers across different risk categories. We relate this behavior …