Risk-weighted total assets = on-balance sheet assets × risk weight+off-balance sheet assets × conversion coefficient × risk weight (the ratio of on-balance sheet and off-balance sheet risk-weighted assets to total assets) Risk-weighted assets refer to assets that classify the assets of banks, determine different risk coefficients according to the risk nature of different types of assets, and take this risk coefficient as the weight. Among the total assets of the banking industry, many assets have zero risk weight and many assets have high risk weight. This depends on the allocation of the asset-liability structure of each bank. Generally speaking, the higher the risk weight, the higher the return. For the specific risk weight list, you need to inquire about the management measures of the central bank and the China Banking Regulatory Commission on the bank's capital adequacy ratio. For example, the risk weight of national debt is zero, the foreign national debt with a rating below AA- is 100%, and the corporate debt risk weight of countries with a rating above AA- is 50%. (1) For credit risk assets, commercial banks can use internal rating method, external rating method and standard method to calculate. Credit risk weighted assets are a measure of the total credit risk undertaken by a portfolio or a single asset. The credit risk assets of banks are classified, and different risk weights (risk coefficients) are determined according to different asset categories. The corresponding assets are weighted by the risk weight (multiplied by the risk weight) to get the credit risk weighted assets.

(2) For market risk assets, commercial banks can use standard method or internal model method to calculate;

Market risk-weighted assets refer to the risk that commercial banks' on-balance-sheet and off-balance-sheet businesses suffer losses due to adverse changes in market prices (interest rates, exchange rates, stock prices and commodity prices). Specifically, it includes interest rate risk and stock risk in trading accounts of commercial banks, as well as all exchange rate risks and commodity risks.

(3) For operational risk assets, commercial banks can use basic index method, standard method or advanced measurement method to calculate.

Operational risk-weighted assets refer to the risks of losses caused by imperfect or problematic internal procedures, employees and information technology systems and external events, including legal risks, but excluding strategic risks and reputation risks.