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Identical coursesSolvency of Financial Institutions (B-KUL-D0R58B)
Cannot be taken as part of an examination contractAims
The goal of the course is to provide students with qualitative and quantitative skills relevant for financial reporting and solvency requirements applicable to financial institutions. Focus is on both theory and practice. Upon completion of the course the student has:
- insight in financial reporting requirements in the EU and at international level for companies in general and for financial institutions in particular
- insight in how to interpret the solvency requirements for financial institutions, with particular emphasis on the existing and planned solvency requirements for banks and for insurance companies (Solvency II, the solvency principles (International Capital Standard) developed by the International Association of Insurance Supervisors (IAIS), Basel frameworks and EU Capital Requirements Directive and Regulation)
- insight in the solvency regulation in Belgium: role of the ECB, the National Bank of Belgium and the Financial Services Market Authority
- insight in the impact of sustainability on solvency rules and practice
- insight in quantitative solvency calculations and relevant management actions.
Previous knowledge
General knowledge about banking and insurance
General knowledge about the products these institutions are offering and about the functioning of financial markets.
Basic knowledge of accounting is useful.
Identical courses
This course is identical to the following courses:
D0Q51A : Solvabiliteit van financiële instellingen
Is included in these courses of study
- Master in de economie, het recht en de bedrijfskunde (Leuven) (Optie: Finance en financieel recht) 120 ects.
- Master of Business Engineering (Leuven) 120 ects.
- Master of Business Engineering (Leuven) (Minor: Actuarial and Financial Engineering) 120 ects.
- Master of Actuarial and Financial Engineering (Leuven) 120 ects.
- Courses for Exchange Students Faculty of Economics and Business (Leuven)
Activities
6 ects. Solvency of Financial Institutions (B-KUL-D0R58a)
Content
Basic principles of accounting - including the role of accounting standards and accounting standard setters
Financial reporting requirements in the EU and at international level, with particular focus on financial institutions
Basic concepts that are relevant for construing a solvency balance sheet
Assessment of different types of risks (e.g. asset risk, liability risk, operational risk)
Provisioning and valuation of liabilities
Asset and liability matching
Regulatory structures for financial reporting and solvency within EU and the organization of prudential supervision
The Basle frameworks, the EU Capital Requirements Directive and Regulation and the EU banking Union
Solvency II and the solvency principles (International Capital Standard) developed by the IAIS
Comparison capital requirements for banks and insurance undertakings
The actuarial function and the role of actuaries
Role of credit rating agencies and statutory auditors
Solvency regulation in Belgium, the role of the ECB, the National Bank of Belgium and the Financial Services Market Authority
Impact of sustainability on solvency rules and practice
Quantitative modelling of solvency: standard formula and internal models, SCR calculations, analyzing and interpreting a Solvency II balance sheet, ORSA and public SFCR report.
Management actions in relation to solvency requirements
Course material
Slides, notes and reading material provided through Toledo
K. Van Hulle, Solvency Requirements for EU Insurers. Solvency II is good for you, Intersentia, 2019 (ISBN 978-1-78068-177-1)
Language of instruction: more information
The course is taught in english. The exam is also in english.
Format: more information
Students are expected to read the material in advance and to participate actively during the sessions
Evaluation
Evaluation: Solvency of Financial Institutions (B-KUL-D2R58b)
Explanation
The result is calculated and communicated as a number on a scale of 20. The evaluation consists of several partial assessments organized during the semester, more information on the type of assessment, the timing and the determination of the final result can be found on Toledo.
The weighting scheme to determine the final result will be communicated via Toledo.
If the student does not participate in one of the partial evaluations, the final grade of the course will be NA (not attended) for the whole course.
Information about retaking exams
No 2nd examination opportunity.
Taking into account the specific characteristics of the course and its evaluation activities, there is no second exam opportunity.