Basel III and Solvency II [11]

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Bullet points include: Some differences seem justifiable based on different business models Others less easy to justify, including: Tier 3 eliminated under Basel III Tier 3 not in practice used much by insurers Bail-in proposals (but note recent PRA comments on resolution requirements for systemically important insurers) Treatment of dated instruments; Solvency II allows 10 year Coupon cancellation and trigger levels Treatment of expected future profits - banks only recognise if contractually committed Intangibles, deferred tax assets, surplus / deficit in pension scheme

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