Then, while reviewing some of the problems involved in private-sector capital insurance, I would like to discuss the potential for capital insurance in the form of a public-private partnership to overcome them. Finally, several other schemes are also introduced from a variety of schemes proposed so far.
These schemes come under the general rubric of "contingent capital" in that they are safety nets that attempts to increase capital when necessary during crisis while having as little impact as possible on the market. (1)  Private sector "capital insurance" 14  Let me begin with an overview of private-sector "capital insurance." As its name suggests, this scheme involves an insurance policy.