Possible Unintended Consequences of Basel III and Solvency II
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Summary:
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.
Series:
Working Paper No. 2011/187
Subject:
Banking Basel III Financial institutions Financial regulation and supervision Financial sector policy and analysis Financial statements Insurance Insurance companies Public financial management (PFM) Solvency
English
Publication Date:
August 1, 2011
ISBN/ISSN:
9781462308279/1018-5941
Stock No:
WPIEA2011187
Pages:
70
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