Newsletter October 2011: BaselIII/Solvency II to hit Europe’s firms hardest

PARIS – Stricter regulatory frameworks for banks and insurers are “likely to result, at best, in a re-pricing, and at worst, a rationing for companies globally,” according the credit rating agency Standard and Poor’s. And European companies will feel the effect more harshly than their US counterparts because they typically rely more heavily on banks for funding relative to capital market sources, the agency says in a research note published in late September.*