Banks and Insurers Run Risks Playing Shell Games With Credit

Insurers are doing more to help European banks cut the capital they need to support their loan books. Regulators deliberately opened the door to this — and it’s a choice the authorities may come to regret. Let it run too far, and banks could end up with too little capital when they need it most. There’s also a better answer to this and other problems in European finance: Create deeper capital markets.