Big Banks Fight Rising Capital Requirements by Managing Down Risk Exposures

Systemically important U.S. banks appear to have made progress managing down risk scores that determine part of their regulatory capital requirements.

The scores, which reflect factors including overall size and exposure to derivatives and foreign counterparties, declined sequentially in the second quarter at each of the eight U.S. global systemically important banks, or G-SIBs, according to S&P Global Market Intelligence data. That brought the scores at most of the banks to near or below levels from the year prior.

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