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Ideology of the Substance: Solvency II Versus Solvency I and Basel II

  • Kristina Loguinova
Chapter
Part of the Economic and Financial Law & Policy – Shifting Insights & Values book series (EFLP, volume 4)

Abstract

The fourth chapter of the second part of this monograph methodologically trashes the ideology of the substance of Solvency II whilst comparing it to Solvency I and Basel II. First, the objectives of all three instruments are compared as methodological trashing involves an investigation into potential contradictions between what an instrument sets out to do and what an instrument actually does.

One of the mains point of critique of this chapter are the problems associated with VaR (which could potentially be solved by econophysics) and the freedom of investment as propagated by Solvency II which turns out to be not so free in practice (which could potentially be solved by lower capital requirements for sustainable assets).

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Authors and Affiliations

  • Kristina Loguinova
    • 1
  1. 1.ECOR and ETAFVrije Universiteit BrusselBrusselsBelgium

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