answersLogoWhite

0

Definition of prudential regulation

Updated: 12/7/2022
User Avatar

Wiki User

14y ago

Best Answer

The prudential regulation is regulation of deposit-taking institutions and supervision of the conduct of these institutions and set down requirements that limit their risk-taking. The aim of prudential regulation is to ensure the safety of depositors' funds and keep the stability of the financial system.

User Avatar

Wiki User

14y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Definition of prudential regulation
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Economics

What is prudential guidance?

The adjective prudential is a form of the word prudent, which means careful, discreet, cautious, wise or reasonable. Prudential guidance would be guidance given in a careful, discreet, cautious, wise, or reasonable manner. An example sentence:The supervisors on Answers.com give prudential guidanceto prevent newcomers to the site from abusing the privileges.


Why would one purchase insurance through Prudential Insurance Company over its competitors?

One would purchase insurance from Prudential if their rates were better than other companies or if they provided services that other companies didn't. Some companies offer their employees discounts from Prudential, and this may induce somebody to get their insurance from Prudential.


Why monopoly and oligopoly is affected by industrial regulation?

what organizations are affected by industrial regulation


Why are all economies mixed?

Because by definition, true free market has no government control or regulation and true planned economy has no place for interaction between the firms when government regulation defines the economy. In all economy (except for maybe North Korea), both government and the market holds stake in the economic activities of the economy hence nearly all economies are mixed


What Government regulation of the free market is required in order to do what?

--Ensure competition and protect consumers. (Apex)That's a trick question. The textbook answer, like the political answer, is usually "for the common good." But the educated person should decide whether that is true.In reality, regulation tends to benefit those who push for regulation. Jean-Baptiste Colbert was the master of market regulation; his principle was that the wealth and the economy of a nation should serve the state. That didn't work out so well for France. In our own country, it's easy to observe that regulation over time has mainly served to increase the disparity between poor and wealthy, making the rich richer, as well as centralize national power. The free-market in this country had no regulation until the late 1800s and early 1900s. It was political sleight of hand that the unprecedented economic collapse which only happened after the advent of federal regulation (by the executive branch, not congress as the constitution allows) then justified further regulation.So, government regulation of the market (which, regulated, is no longer free) is required in order to control the market. By definition, regulation is necessary to every form of capitalism except the free market.

Related questions

What is the population of Australian Prudential Regulation Authority?

Australian Prudential Regulation Authority's population is 580.


When was Australian Prudential Regulation Authority created?

Australian Prudential Regulation Authority was created on 1998-07-01.


What is non prudential regulations?

Non prudential regulation covers business behaviour but does not involve the govt taking responsibilities for the financial soundness of the organization


Why the regulations in financial institutions?

Prudential regulation in financial institutions enables transparency and protection of stakeholders of the institutions.


What has the author LAZAROS PANOURGIAS written?

LAZAROS PANOURGIAS has written: 'BANKING REGULATION AND WORLD TRADE LAW: GATS, EU AND PRUDENTIAL INSTITUTION BUILDING'


What is prudential reasons?

what is prudential?


Where is the head office for Prudential Assurance?

The head office of the Prudential Assurance company is located in Newark, New Jersey. The Prudential Insurance company has many buildings, such as the Prudential Gibraltar building and the Prudential Plaza.


What has the author Larisa Dragomir written?

Larisa Dragomir has written: 'European prudential banking regulation and supervision' -- subject(s): Banking law, Law and legislation, International Banks and banking


What is prudential regulations?

prudential regulation is An appropriate legal framework for financial operations is a significant contributor to preventing or minimising financial sector problems. Evidence shows that the absence of prudential regulations in some key areas can lead to bank failures and systemic instability, while establishing sound, clear and easily monitored rules for financial activities both encourages managers to run their institutions better and facilitates the work of supervisors. A major weakness of some financial systems is the fact that various financial institutions, especially cooperatives and intermediaries in rural areas, operate completely outside prudential regulations. Some countries have one single general banking law, which tries to assemble all regulations, but in many countries the operational issues are left to statutory notes, circulars or even simply the routine decisions of the supervisory institution. Various other laws can have an impact on the operation of financial institutions, e.g. company laws, securities laws, debt recovery laws and laws on liquidation and bankruptcy.


What is Prudential Financial's population?

The population of Prudential Financial is 39,422.


When was Prudential Center created?

Prudential Center was created in 2007.


When was Prudential Headquarters created?

Prudential Headquarters was created in 1960.