Topic 19 Flashcards
What are the prudential rules responsible for
It is responsible for the prudential regulation of all deposit takers, insurers and significant investment firms
What does the Basel committee on banking do
Sets standards for prudential regulation of banks globally
What is solvency
Extent to which a business assets exceed its liabilities
What is solvency ratio
Capital as a percentage of risk adjusted value of assets
What is capital adequacy
Ensuring that a business holds sufficient reserves of capital to ensure it is sustainable
What is liquidity
Ease and speed with an assets can be converted into cash without significant loss of capital value
What min solvency does Basel III requires banks to have
10.5 %
Who is responsible for the implementation of solvency II
the European insurance and occupational pensions authority
What is the main aim of the solvency II
Harmonise regulation of the EU insurance industry and is focused on the amount of capital and insurer must hold to reduce the risk of insolvency
Why will some EU insurance terms not he subject to solvency II requirements
Depends on the amount of premiums they write and the value of technical provision or type of business written
What is INSPRU
Prudential sourcebook for insurers detailing the capital requirements and technical provisions for insurance companies
What is MIFIDPRU
Prudential sourcebook for Mifid investment firms
what is MIPRU
prudential sourcebook for mortgage and home finance firms and detail requirement for capital and professional indemnity insurance
