Solvency supervision

The examination of banks and insurance companies by the supervisory authority with a view to maintaining their permanent solvency. – In principle, solvency supervision views risk factors as exogenous, i.e., as affecting institutions and insurance companies from outside. It endeavors to limit risk positions by means of uniform rules (level playing field). The focus is thus on the vulnerability of the individual company. Linkages with other parts of the financial system are taken into account only to the extent that direct threats can be identified on the basis of contractual relationships. – See Anstekkungswirkungen, Kontrahentenrisiko, Liquiditätsrisiko, Solvency-II.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/