GREAT STEP FROM AUDI BANK TOWARD BASEL II

posted on August 2012

Bank Audi finalized its sale Wednesday of a majority stake in its LIA unit – an estimated over-$100 million transaction – to Saham Finances, a top player in the African insurance market.


Bank Audi and Saham will move forward under a joint cooperation agreement giving LIA a signature presence throughout Africa in the field of bancassurance.

Read more: http://www.dailystar.com.lb/Business/Lebanon/2012/Jun-28/178526-bank-audi-sells-stake-in-lia-to-saham.ashx#ixzz22Hx6ORFq 

(The Daily Star :: Lebanon News :: http://www.dailystar.com.lb) 


Bankers Guide To Basel II: Insurance entities
A bank that owns an insurance subsidiary bears the full entrepreneurial risks of the subsidiary and should recognize on a group-wide basis the risks inc

luded in the whole group. When measuring regulatory capital for banks, the Committee believes that at this stage it is, in principle, appropriate to deduct banks’ equity and other regulatory capital investments in insurance subsidiaries and also significant minority investments in insurance entities(The deduction approach will be 50% from Tier 1 and 50% from Tier 2capital)Supervisors will ensure that majority-owned or controlled insurance subsidiaries, which are not consolidated and for which capital investments are deducted or subject to an alternative group-wide approach, are themselves adequately capitalized to reduce the possibility of future potential losses to the bank