The paper provides guidelines on the recognition of insurance within the AMA capital calculation. Topics addressed cover the eligibility of protection providers, characteristics of eligible products and haircuts for uncertainty of coverage.
The paper intends to provide appropriate guidelines on the recognition of insurance within the AMA capital calculation. Topics addressed cover the eligibility of protection providers, characteristics of eligible products and haircuts for uncertainty of coverage.
As to the ORTM, a first set of guidelines are elaborated that require, for the use of these products within the AMA, a sort of experience requirement and the requisite to not held or use them for trading purposes.
In addition the document anticipates the more conservative requirement of the CRD which is currently being considered under the Comitology procedure, namely that both insurance contracts and ORTM together should not exceed the 20% limit for capital alleviation.
A public hearing will take place in July 2009
Deadline for comments is 7 July 2009.
Press release
Consultation document
© CEBS - Committee of European Banking Supervisors
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