The new law stipulates that listed insurance companies must have capital greater than QAR100 million or their risk-based capital requirement
, while unlisted insurance companies must have capital higher than the figure set by the QCB or their risk-based capital requirement
We have been very much against the idea of establishing for pension funds and other institutions for occupational retirement provision (IORPs) a European risk-based capital requirement
framework similar to the one set out in the Solvency II legislation for insurance companies.
Regulation is imposed in the form of a risk-based capital requirement
This minimum required amount is only expected to apply to insurers at the smaller end of the market as the risk-based capital requirement
of the solvency standards will generally drive a Minimum Solvency Capital requirement well in excess of the stated minimum amounts.
Recognizing this problem, the Basel Committee has now introduced a simple, non-risk based leverage ratio to supplement the risk-based capital requirement
that captures risks arising from total assets, he observed.
capital formula to determine the risk-based capital requirement
He presumes that the mean path for these losses is already cyclical and shows via simulations that a risk-based capital requirement
is likely to have procyclical effects, which he suggests can be partially offset only by "judicious calibration" of minimum capital requirements during a downturn.
banks cast serious doubt on the credibility of the measure computed from the combination of a banks' own individual risk models for probability of default and loss given default and the regulators' model for computing the associated risk-based capital requirement
This is because with a binding risk-based capital requirement
, a bank cannot expand lending without additional capital.
Finally, since the requirements do not cover the full range of risks facing insurance firms, supervisors typically expect insurers to maintain multiples of the minimum risk-based capital requirement
The risk-based capital requirement
under Solvency II; it is calibrated to a 99.
100% reduction in the risk-based capital requirement
for toxic assets.