Bundesbank’s Buch slams lower capital for insurers in infrastructure
Deputy president says the use of prudential regulations to achieve economic policy objectives is “highly problematic”
European Commission (EC) proposals to relax the capital that insurers need to hold against investment in infrastructure assets compared to the original Solvency II rules have been slammed by the Deutsche Bundesbank.
In an interview with Risk.net, Claudia Buch, deputy president of the Bundesbank, agrees the move appears to have been motivated, at least in part, by the commission's policy objective to encourage investment of at least €315 billion in European infrastructure by the end of 2017.
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