In the current proposal for Solvency II, which will probably come into force on  8  See Article 476a, Para (1), of the Capital Requirements Regulation (CRR): “Capital requirements for credit risk on exposures to small and medium sized enterprises shall be multiplied by the factor 0.7619.”  BIS central bankers’ speeches  5  1 January 2016 with a 10-year phase-in period, the capital requirements for certain securitised products will increase significantly, thus potentially reducing insurers’ willingness to allocate funds to such asset classes.
The causes of such episodes are complex and often subtle. In the case of BIS Review 6/1998  -4-  Asia, we can now say with some confidence that the economies affected by this crisis faced a critical mass of vulnerabilities; ex ante, some were more apparent than others, but the combination was not generally recognized as critical.