Miscellaneous 2013

Capital management of financial institutions and the related tax issues

Source: The Tax Specialist Journal Article

Published Date: 1 Apr 2013


Against the background of the first anniversary of the global financial crisis, the leaders of the Group of 20 countries and the European Union met in September 2009 and agreed on basic principles for a set of reforms to strengthen the international financial regulatory system. These principles are now known as Basel III. The Basel III reforms cover the capital, liquidity and funding positions of banks. This article is focused on capital requirements. The article focuses on bank capital and bank capital management as the principles are similar for insurers, although relevant issues for insurers are also mentioned.

The article opens with an introduction to bank and insurance capital and the Basel III capital reforms. The article then discusses Tier 1 and Tier 2 securities, and the interaction of bank capital with ratings capital. The remainder of the article then examines tax issues for bank issuers, insurance issuers and investors.

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Miscellaneous 2013

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