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“The twilight zone is much larger than market optimists like to admit”

Professor Antoon Pelsser shares his opinion on Solvency II

In 2009, the European Council and the European Parliament adopted the Second Directive aimed at improving supervision on European insurance companies: Solvency II. The ‘total balance sheet’ approach, at which assets and liabilities are reported at fair market value, should provide supervisory agents a better insight on the financial health of insurers. Professor Antoon Pelsser, of Maastricht University, an expert on risk management, has conducted research on the asset and liability management of insurance companies. He shares his observations on Solvency II.

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New terms for a marriage of convenience

Impact of Basel III on corporate banking relationship

While Basel III may restore the health of the financial markets and the banking industry in the long run, it will also have an impact on the real economy and business in the mean time. The economic impact of Basel III is often mentioned, but seldom analyzed in detail. This article assesses the potential impact of Basel III on companies and outlines some options that corporate treasurers and bankers can explore in order to minimize the effects.

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Shift towards an American funding model

Early this year we published an article on the shift in Europe towards an American funding model. This American model points the way of funding for corporates in Europe. In the United States the most important elements of corporate funding are based on the debt capital markets and private placements, rather than on bank credit.

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Challenges to the recapitalization of European banks

Implications for high risk/high yield banking activities

The requirements to be introduced by Basel III will lead to higher capital ratios and adequate liquidity resources. They will make it necessary to adopt new strategies and innovative solutions to optimize balance sheets and sustain the profitability of banks. As such, banks will be forced to reconsider their product offerings and funding strategies pushed by the policymakers’ urge to a recapitalization of the banking sector.

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Developments in Corporate Lending

The financial media are full of buzzwords such as ‘Greek default’, ‘euro crisis’, ‘recession’, ‘liquidity shortage’, ‘Basel III’ and ‘credit crunch’. 

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