Financial Repression Tracker

Rules that steer savings into government debt or hold returns below inflation, country by country.

Steer · Prudential sovereign bias

Insurance solvency rules exempting sovereign bonds

What it is
Insurance capital regimes apply a zero spread-risk (and concentration-risk) charge to domestic-currency government bonds.
Why it counts
Insurers can match long liabilities with government bonds at no capital cost, steering policyholder savings into sovereign debt.

When it was in force

  • European Union: 2016 → now, in force

Example

  1. European Union

    2016 → nowIn force

    Bonds and loans to EU Member State central governments in domestic currency get a 0% spread-risk factor in the standard formula.

    Commission Delegated Regulation (EU) 2015/35 (Solvency II), Article 180(2)Primary source
    “Exposures in the form of bonds and loans to the following shall be assigned a risk factor stressi of 0 %: (a)the European Central Bank; (b)Member States' central government and central banks”

    legislation.gov.uk (opens in a new tab)Checked: quote confirmed on the page by a reviewing agent

    European Union today: index 44.0

Examples and their dates reviewed .

Further reading