The Basel Committee has published its report on the regulatory consistency of risk-weighted assets (RWAs) for counterparty credit risk. The report forms part of the wider regulatory consistency assessment programme intended to ensure consistent implementation of the Basel III framework. The report presents the findings from a hypothetical test portfolio exercise to examine variability in banks’ modelling of derivatives, and specifically in exposure modelling. It focuses on the internal models method and the advanced credit valuation adjustments risk capital charge for OTC derivative trades. Based on the results, the Basel Committee is considering whether to narrow down certain modelling choices for banks and/or harmonise supervisory practices to enhance consistency in outcomes. (Source: Basel Committee Reports on the Regulatory Consistency of RWAs)