Structured correctly, a reduction in a bank's Risk Weighted Assets for certain corporate credits may still be possible, even under the new bank regulation. David McKibbin (Scute Consulting) provides a case study. A more detailed write-up can be found here.
David McKibbin: With many bank credit risk mitigation techniques now being questioned by regulators and more and more corporate funding transactions coming back on balance sheet, new and effective solutions are required. Banks need to reduce RWA's, which must better reflect effective due diligence and ongoing risk.
The attached case study is aimed at the European IFRS market.
RWA reduction case study