Bank Risk-Taking, Securitization, Supervision, and Low Interest Rates: Evidence from Lending Standards
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The balance sheets of life and non-life insurance companies reflect the importance of
technical (insurance underwriting) risks for insurance firms. Life insurance companies
typically have the greater part of their liabilities taken up by technical provisions, in some
jurisdictions more than 80 percent. This reflects the amount that the firm is setting aside to
pay potential claims on the policies that it has written. Correspondingly, more than 90 percent
of the assets of life insurance companies comprise the investment portfolio held to support
these liabilities. The dominant risks for a life insurance company are whether its calculations
of the necessary...
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Bank Risk-Taking, Securitization, Supervision, and Low Interest Rates: Evidence from Lending Standards
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Bank Risk-Taking, Securitization, Supervision, and Low Interest Rates: Evidence from Lending Standards
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