Yeees, at the AFR:
Analysts examining NAB’s result, which included a 64 per cent cut to the interim dividend and $3.5 billion capital raising, say the entire amount of the $3 billion institutional placement could be chewed up by the higher risk weightings assigned to its loans as the economy weakens.
This occurs because as unemployment rises and property prices fall, banks are forced to increase both the “probability of default” and “loss given default” in their risk models. The latter calculation reflects the amount actually lost by a bank when a loan is not repaid, which rises when the value of the security backing the loan falls.