Under the Dodd - Frank Act, SIFIs are deemed to pose a serious risk to the real economy if they were to fail and have to
meet higher capital requirements and develop detailed contingency plans to be followed in the event of a failure.
Not exact matches
The Solvency II proposal aims to
meet these new challenges, not by increasing the overall levels of
capital requirements — ie how much an insurance firm must put aside to
meet any claims that may arise — but rather by ensuring a
high standard of risk assessment and efficient
capital allocation.
If this
capital was not at hand, governments and corporates would have to borrow to
meet capital requirements, thereby risking
higher debt - servicing expenses.
The largest banks can handle the compliance and
higher capital requirements, but the smaller banks have less resources to
meet these new regulations,» said Yun.