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EFDI │ Belgrade 2011.

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Presentation on theme: "EFDI │ Belgrade 2011."— Presentation transcript:

1 EFDI │ Belgrade 2011

2 Risk Adjusted Premiums
Risk Adjusted Premiums │ Harmonization ? Funding Compen-sation Risk Adjusted Premiums Intervention Business Models / Risk Profiles Environment national Taxation / Laws Accounting Standards Regulations (Basel II/III)

3 Risk Adjusted Premiums
Risk Adjusted Premiums │ Funding Contribution linked to individual risk  Insurance Approach Funding linked to portfolio risk and/or stressed to risk scenarios  be Prepare Approach Funding Compen-sation Risk Adjusted Premiums Intervention

4 Risk Adjusted Premiums
Risk Adjusted Premiums │ Compensation Liquidity linked to risk profile  be Prepare Approach Organistation linked to risk situation  to be Prepare Approach Funding Compen-sation Risk Adjusted Premiums Intervention

5 Risk Adjusted Premiums
Risk Adjusted Premiums │ Intervention Risk analysis for early intervention purposes  Early Warning Approach Individual migration analysis Funding Compen-sation Risk Adjusted Premiums Intervention

6 Top Level Harmonization of Risk Based Approach Early-Warning Approach
Risk Adjusted Premiums │ Harmonization Top Level Harmonization of Risk Based Approach Early-Warning Approach be Prepare Approach Insurance Approach Environment Regulations (Basel II/III) Accounting Standards Business Models / Risk Profiles national Taxation / Laws

7 Risk Adjusted Premiums │ Harmonization I
Conceptual Framework Simple: the model needs to be understandable by DGS members. Accurate: the model should accurately reflect the relative risk that the DGS members pose to the fund (the model should be effective at discriminating banks into appropriate risk categories). Reasonable: in terms of amount of information required, i.e. the collection of the inputs for the model should avoid unduly burdening DGS members. Affordable/Sustainable: The model should not cause insolvency to any DGS member, i.e. the costs resulting from the model should be met by the DGS members. Flexible: the model should be adjustable to different countries, i.e. different economies, different legal structures, different financial markets, different bank types, different business strategies. Open and Transparent: the DGS should know why they are in a risk class and should be able to verify it. Impartial: the model should be fair. Banks with similar characteristics should be categorized similarly. (EFDI Working Group III: Development of Common Voluntary Approaches to include Risk Based Elements for DGS“, 2009 , Joint Research Centre)

8 Risk Adjusted Premiums │ Harmonization II
Definition of power of discretion (national/central) criteria (quantitative/qualitative) risk oriented weighting system, sensitive thresholds methods (mathematical/statistical, experts know-how, mix of both) contribution range (risk coefficient - 75% up to 200%) number of risk classes (five?) back testing validation stress testing Consideration of an adequate level of flexibility (e.g. various business models, risk profiles, legal and competitive environments, accounting standards, regulatory options)  European Forum of Deposit Insurers (EFDI) as a qualified platform for further discussion and coordination

9 Thank you very much for your attention
Risk Adjusted Premiums │ EFDI Belgrade 2011 Thank you very much for your attention Bernd Bretschneider managing director GBB-Rating Gesellschaft für Bonitätsbeurteilung mbH (Credit Rating Agency) Kattenbug 1 D Cologne Germany Phone: Fax:

10 Risk Adjusted Premiums │ EFDI Belgrade 2011
Bernd Bretschneider managing director GBB-Rating Gesellschaft für Bonitätsbeurteilung mbH (Credit Rating Agency) Kattenbug 1 D Cologne Germany Phone: Fax: CV Apprenticeship: SGZ-Bank AG (today DZ Bank), Frankfurt, Germany Studies of business administration: Friedrich-Alexander-Universität, Nuremberg, Germany Universität zu Köln, Cologne, Germany Academic Title: Diplom-Kaufmann University of Bradford, Bradford, UK Academic Title: MBA Consultant: Organisationsforum Wirtschaftskongress e.V. (OFW), Cologne, Germany Commerzbank AG: Knowledge based Systems, Frankfurt, Germany Commerzbank AG: Customer Analysis in the German Democratic Republic, Leipzig, Germany Manager Business Clients: Bayerische Hypotheken- und Wechsel-Bank AG (today UniCredit), Berlin, Germany Analyst/Managing Director: GBB-Rating Gesellschaft für Bonitätsbeurteilung mbH, Cologne, Germany


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