Prudential Regulation
Oversight ensuring banks maintain safe operations (capital, liquidity, etc.).
Detailed Description
Prudential Regulation
What is the primary goal of prudential regulation?
The primary goal is to maintain the stability of the financial system.
Which regulatory bodies oversee prudential regulation in the United States?
The Federal Reserve, OCC, and FDIC oversee prudential regulation in the U.S.
What are some core principles of prudential regulation?
Core principles include maintaining capital buffers, adequate risk management, and transparency in governance.
How does prudential regulation impact financial institutions?
It requires compliance with regulatory standards, fostering a culture of risk awareness and accountability.
What international standards influence prudential regulation?
International standards such as the Basel Accords, particularly Basel III, influence prudential regulation.