![Risk.net](https://www.risk.net/sites/default/files/styles/print_logo/public/2018-09/print-logo.png?itok=1TpHrpuP)
The sum of its parts?
The latest Basel committee proposals to force insurance subsidiaries’ equity to be financed with the parent’s Tier I capital poses a threat to the bancassurance business model, already wounded from high-profile failures. The increased cost of capital risks are obscuring the diversification benefits that were its strongest selling point, but the distribution advantages may yet provide a way out. Laurie Carver reports
![head head](/sites/default/files/styles/landscape_750_463/public/import/IMG/777/94777/head-580x358.jpg.webp?itok=ji0OESZr)
The Basel Committee on Banking Reform had a message for the bancassurance industry in its long-awaited revisions to its latest regulatory guidelines: the party’s over.
The revisions, published in the committee’s consultative document, Strengthening the Resilience of the Banking Sector, in December last year, took aim at many aspects of the financial services industry, but one proposal could pose a threat to the bancassurance model that until recently was held up as the way to get the best from
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Vendors lack silver bullet for FRTB’s fund-linked issue
EU and UK legislators tried to ease capital charge by leaning on vendors, but problems persist
Does Basel’s internal loss multiplier add up?
As US agencies mull capital reforms, one regulator questions past losses as an indicator of future op risk
US Treasury official calls for SLR relief during market stress
Under Secretary Liang also urges scrutiny of “artificial incentives” for Treasury futures in 40-Act rules
US banks seek to open vendors’ black box on green data
Inaugural Fed climate scenario analysis flags lack of transparency around third-party models
Why FRTB models are on the edge of extinction
With only four banks known to be applying to use internal models for market risk, the fate of advanced modelling looks precarious
Reframing the Fed’s discount window
Funding window incentives and collateralised credit lines could transform bank liquidity in a crisis, argues Bill Nelson
Attention shifts to US, UK after European Union postpones FRTB
Risk Live: Global timeline still unclear, with banks hoping lawmakers will use delay to soften rules
Go your own way: departures pose new challenges for CFTC
Loss of Democratic majority would impede chairman’s ambitions for regulatory agenda
Most read
- Harvesting the FX skew premium
- How steepener trades burned hedge funds, and what happened next
- What T+1 risk? Dealers shake off FX concerns