Copenhagen – Nykredit’s retail banking loan book risk-weight has climbed to its highest level since the end of 2016, reaching 45.8% in the fourth quarter of 2025, according to a report by Risk.net. This represents a 4.5 percentage point increase and a significant shift from the relative stability of the previous year, where the ratio fluctuated by less than 40 basis points.
The increase in risk-weighting comes as US banks are showing a decreased appetite for Treasury holdings, with lenders diverging on strategies for adding exposure, Risk.net reported. Across 56 reporting banks, US Treasuries held to maturity shrank by 4.9% to $467.2 billion in the last quarter of 2025.
The Risk.net report details that the rise in Nykredit’s retail banking risk-weight is being observed alongside broader shifts in the financial landscape. Huntington and Fifth Third are both set to become Category III banks in 2026, a change that will impact their regulatory oversight and capital requirements.
Nykredit’s risk-weight increase is being closely watched by industry analysts, as it signals a potential tightening of credit conditions and a reassessment of risk profiles within the retail banking sector. The jump to 45.8% places the risk-weight second only to that of commercial banking portfolios.