RWA meaning

3BWs...1tkr
2 Jan 2024
8

The best explanation is: RWA means real assest transferred to blockchain.Rights to such are tokenized and represented in the form of computer code.Rwa has many different functions.The technology that always you to buy a share in almost anything.Rwa are used to link the minimum amount of capital that banks have, whit the risk profile of the bank's lending activites.The more risk a bank is taking the more capital is needed to protect depositors. For example; holdings of goverment bonds might be weighted as %0 risky. While unsecured loans maybe weighted as %100 risky, with mortgage loans as %40 risky. RWAs also include statistical calculations of market and operational risk. Δ°t is calculated by multiplying the exposure amount by the relevant risk weight for the type of asset or loan.The total credit risk-weighted assets are calculated by the banks by repeating the above calculation for all of its assets and loans.

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