Basel III versus Solvency II [7]

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Bullet points include: Banks Insurers Assets Often IFRS, bank loans deemed financial instruments, IAS 39, loan provisioning generally retrospective, IFRS 9 amortised cost or fair value Solvency II uses market consistent, i.e. fair, values (and less reliance on general purpose accounting) Liabilities Also typically at amortised cost or fair value Transfer/settle cost, approximated by best estimate + risk margin or MV of replicating portfolio, more prospective Own credit risk Basel III will effectively disallow benefit previously available under Basel II No More retrospective (hence stable in the short term) for banks than insurers Relevant to design of counter-cyclical elements, but counter-cyclical versus what?

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