Cover IMF Working Papers
Possible Unintended Consequences of Basel III and Solvency II
Author:
International Monetary Fund
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Series:
IMF Working Papers
Volume/Issue:
Volume 2011: Issue 187
Language:
English
Publication Date:
01 Aug 2011
DOI:
https://doi.org/10.5089/9781462308279.001
ISBN:
9781462308279
ISSN:
1018-5941
Pages:
70
Keywords:
WP; balance sheet; capital requirement; equity capital; credit risk; Basel III; Solvency II; Cost of Capital; Funding; Interconnectedness; fair value; bank assets; preference shares; conservation buffer; bail-in capital proposal; holding company; unsecured debt; Insurance companies; Solvency; Insurance; Financial statements; Europe; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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In today's financial system, complex financial institutions are connected through an opaque network of financial exposures. These connections contribute to financial deepening and greater savings allocation efficiency, but are also unstable channels of contagion. Basel III and Solvency II should improve the stability of these connections, but could have unintended consequences for cost of capital, funding patterns, interconnectedness, and risk migration.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2011: Issue 187