Regulatory Alerts2016-04-25 | NBB_2016_16Added · Updated
Circular NBB_2016_16 / Circular on guidelines for the treatment of market and counterparty risk exposures in the standard formula
The National Bank of Belgium issues guidelines requiring Belgian insurance and reinsurance undertakings to apply specific treatments for market and counterparty risk exposures within the Solvency II standard formula. The document mandates precise methodologies for calculating capital requirements regarding extra-legal employee benefits, bond duration with redemption options, interest rate risk sub-modules, hybrid assets, short positions, securities lending transactions, and binding payment commitments. These rules become effective on 23 March 2016 for the specified entities.