The solvency problems of banking entities continue. evolution of risk-weighted assets in spanish banking entities

To address the problems of banking risk management models, the regulation implemented in Basel III included a stricter criterion in the calculation of capital, but the calculation of asset risk weights continues to be delegated to banks. In the article we address the evolution of the risk-weighted assets of deposit institutions in Spain, which shows the strategy followed in the period 2008-2021 and the impact that their reduction has had on the improvement of solvency and their ability to face future crises.