Banks Aren’t Going to 'HODL' Bitcoin
Headlines

Banks Aren’t Going to ‘HODL’ EdaFace


The 1% exposure limit applies only to Group 2 assets. It means that because Group 2 assets are extremely risky, banks won’t be allowed to have much in the way of exposure to them. In the example above, J.P. Morgan has Tier 1 capital of 13.7% of total risk-weighted assets. So for J.P. Morgan, total Group 2 crypto asset holdings (including bitcoin) can’t be more than 0.137% of its total risk-weighted assets – and considerably less of its total assets unweighted for risk. Admittedly, for a bank the size of J.P. Morgan, that is still a lot of bitcoin. But it’s worth remembering that the previous version of the BIS proposals, issued in June 2021, didn’t impose a total exposure limit. So, far from encouraging banks to hold bitcoin, the revised proposals actually make it more difficult.

Related posts

ALGT Presale Becomes Top Choice for Ethereum Investors as ETH Price Eyes $4000 Milestone in April 2024

EdaFace Admin

Huobi Supports PayPal’s PYUSD Stablecoin Launch with Zero Trading Fees!

EdaFace Admin

Cardano Price Analysis: ADA Price Poised For 40% Rally Soon

EdaFace Admin

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More