The treatment of sovereign risk is an anomaly in the Solvency II directive that few in the industry expect to last. But regulators remain divided over what to do about it.
Because sovereign bonds are considered risk-free in the standard formula, insurers can theoretically hold no capital against them and avoid admonition from their supervisors. But some regulators, such as Carlos Montalvo, executive director at the European Insurance and Occupational Pensions Authority (Eiopa), have recently
- Asia moves: Natixis sales head moves to Barclays, new banking head for StanChart Singapore, and more
- Functional programming reaches for stardom in finance
- Banks hope final FRTB rules will ease NMRF burden
- Banks use machine learning to ‘augment’ corporate sales
- Buy-siders eye ways to get ahead of US resolution stay rules