Ballast

Regulatory Capital & Basel/FRTB

Agent StatusAll Active

Prudential Reporting Team

Regulatory Capital Group

Scenario & Sensitivity Analytics

What-if capital impact modelling: RWA optimization, balance sheet actions and ratio sensitivity

What-If Runs (30d)

64

Best RWA Optimization Found

-£1.8B

Max Adverse Sensitivity

-0.31pp

Actions Adopted (YTD)

9

Modelled Action / ShockRWA ImpactCET1 ImpactHorizonDirection
Optimize IRB model overrides on corporate portfolio-£1.8B+0.17ppImmediate Accretive
Securitize £2.0B of performing SME loan book-£1.4B+0.13pp1 Quarter Accretive
+50bps parallel rate shock — banking bookn/a-0.31ppImmediate Dilutive
Migrate FX desk from SA to FRTB IMA-£0.6B+0.06pp2 Quarters Accretive
GBP 10% depreciation vs. USD/EUR basket+£0.9B-0.09ppImmediate Dilutive

About This Agent

Data on This Page

Modelled balance-sheet actions and market shocks with their projected RWA and CET1 ratio impact, implementation horizon, and whether the effect is capital-accretive or dilutive. Stat tiles cover what-if runs in the last 30 days (64), the best RWA optimization found (-£1.8B), the largest adverse sensitivity (-0.31pp), and actions actually adopted year-to-date (9).

What This Agent Does

Runs the RWA Calculation Engine and Capital Adequacy agent's models against hypothetical balance-sheet actions (securitization, model migration, override changes) and market shocks (rates, FX) without touching production figures, ranks proposed actions by capital efficiency, and hands adopted actions to Scenario tracking for post-implementation validation.

Worked Examples

  • Optimizing IRB model overrides on the corporate portfolio is the single most capital-accretive action modelled this month, worth +0.17pp of CET1 with no balance-sheet change required.
  • A +50bps parallel rate shock to the banking book would cost 0.31pp of CET1 through AFS reserve movements — the largest adverse sensitivity currently on file.
  • Migrating the FX desk from FRTB SA to IMA is projected to free up £0.6B of RWA, but is gated on the desk clearing its current red-zone backtesting status.