The insurance and banking regulatory regimes are clearly very different. That's certainly the conclusion you would reach from reading the raft of associated regulations. While Solvency II appears to give firms discretion over the scope and design of their internal models, the banking regime largely prescribes the structure of the model. The ability of individual banks to calibrate their model could be thought of as being more akin to an insurer's option to set ‘undertaking specific parameters'.
The week on Risk.net, December 9–15 2017Receive this by email