TY - JOUR T1 - Examining Key Regulations through the Global Lens: <em>Regulatory Capital for Banks and Insurers</em> JF - The Journal of Structured Finance SP - 27 LP - 30 DO - 10.3905/jsf.2014.20.3.027 VL - 20 IS - 3 AU - Kevin P. Hawken AU - Christophe Cadiou AU - Katie McCaw AU - Olivier Trecco Y1 - 2014/10/31 UR - https://pm-research.com/content/20/3/27.abstract N2 - The panel “Examining Key Regulations through the Global Lens: Regulatory Capital for Banks and Insurers” was held on June 11, 2014, at the Global ABS 2014 conference in Barcelona. The panel focused on two pending regulatory proposals: the Basel Committee’s second consultation document on revisions to the Basel securitization framework (BCBS 269), published in December 2013 with a comment period ended March 21, 2014, and the European Insurance and Occupational Pension Authority’s (EIOPA) Technical Report on Standard Formula Design and Calibration for Certain Long-Term Investments (EIOPA/13/513), also published in December 2013 and being considered by the European Commission. The Basel proposal relates to the international standards for capital treatment of securitizations by banks acting as originators or sponsors of or investors in securitization, while the EIOPA proposals relate to capital requirements under the Solvency II Directive for European insurance and reinsurance companies as investors. The panel members described where each of these proposals stands in its rulemaking process and when they might be finalized and implemented. They also discussed some of the issues that have been identified in comments on the Basel proposal and described the overall structure and method of the Solvency II framework and securitization’s place within it. Finally, the panelists touched on some emerging trends, including the greater importance of stress testing for major banks and moves to provide less onerous capital treatment for securitizations meeting defined criteria (as in the EIOPA report) or to calibrate inputs separately for different regulatory or market-standard asset classes (as in comments on the Basel proposal).TOPICS: Global, asset-backed securities (ABS) ER -