Take, for example, the interplay between the Capital Requirements Directive/Capital Requirements Regulation, which serve to implement the Basel III rules in Europe, and Solvency II: the former seeks, among other things, to place bank funding on a more stable, long-term basis. However, Solvency II may, under certain circumstances, benefit short-dated bonds, impacting insurers’ asset allocation and thus banks’ funding costs. 4.
Implementing Basel III  Ensuring consistency clearly calls for intensive cross-border cooperation. This holds especially true as the reform process is shifting from policy development to implementation. Countries must live up to their commitments and ensure the timely and globally consistent implementation of agreed policies. This applies, above all, to Basel III, which is without doubt the central achievement of our reform efforts.