Bank Funding Threatened by Basel III and Solvency II, Thiam Says

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Banks may struggle to raise funds from insurers due to a conflict between Basel III rules for lenders and Solvency II regulation for insurers, Prudential Plc Chief Executive Officer Tidjane Thiam said.

“The inconsistencies between Solvency II and Basel III are a major issue,” Thiam, 50, said today at a panel discussion with JPMorgan Chase & Co. CEO Jamie Dimon and UBS AG Chairman Axel Weber at the World Economic Forum in Davos, Switzerland. “Who’s going to provide capital to the banks?”