The phrase
"solvency requirements" refers to rules or standards that a person or company must meet to show that they have enough money or assets to pay their debts and financial obligations. It ensures that individuals or businesses are financially stable and able to meet their financial responsibilities.
Full definition
Banks are businesses with financial objectives that must be met to stay compliant with investor objectives and
legal solvency requirements.
The judge distinguished between everyday insurance and what Brent was doing — not only did it pay LAML a premium for insurance cover but it also had, first, to make a capitalisation payment to LAML, by way of guarantee, to meet
FSA solvency requirements.
Solvency II increases the scope of
EU solvency requirements with the new regime taking a «total balance sheet» approach, meaning that it considers both the liabilities and the assets side of the balance sheet, and the interaction between the two.
A review of the Occupational Pension Funds Directive 2003 / 41 / EC will, however, take place in 2008 and the Commission will examine
whether solvency requirements can or should be developed for pension funds.
In addition, Saxo Bank A / S as a European Licensed Bank comes under greater regulatory scrutiny and has
higher solvency requirements than brokers which do not operate with a full banking license.
According to a Boston Consulting Group report, the cumulative losses for private life insurers are in excess of Rs 16,000 crore in the past one decade with almost 75 - 80 per cent capital being used for funding operating losses rather than
solvency requirement.