Riskipainotuksien

Riskipainotuksien, a Finnish term often translated as "risk weighting" or "risk-weighted assets," is a concept used in financial regulation, particularly in banking. It refers to the practice of assigning different risk levels to various types of assets held by a financial institution. These risk levels are then used to calculate a capital requirement, which is the amount of capital a bank must hold to absorb potential losses.

The primary goal of risk weighting is to ensure that banks have sufficient capital reserves to cover the risks they undertake. Assets considered to be riskier, such as unsecured loans or certain types of investments, are assigned higher risk weights, meaning they require a larger amount of capital to be held against them. Conversely, less risky assets, like government bonds or fully secured loans, receive lower risk weights and thus require less capital.

This system was notably codified in international banking regulations like the Basel Accords. The Basel Accords provide a framework for how banks should calculate their risk-weighted assets and maintain adequate capital ratios. By differentiating capital requirements based on the risk profile of an institution's assets, riskipainotuksien aims to promote financial stability and prevent systemic crises. It encourages banks to manage their risk exposures prudently by making riskier activities more capital-intensive.