Quoting the Crisis

Implementation of the Basel III capital rules with regard to banks with insurance companies is a particular point of friction, as tweaks backed by France and Brussels will boost the capital of Société Générale and Crédit Agricole by billions of euros – both owners of insurance companies.

In December global regulators rebuffed France and overwhelmingly sided with the UK’s stricter interpretation. Yet the Franco-German statement will restate support to amend the rule, which prevents capital being double-counted towards the requirements of both the insurer and parent bank.