answersLogoWhite

0

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

16y ago

What else can I help you with?

Continue Learning about Economics

What is the difference between prudential regulation and nonprudential regulation?

Prudential regulation focuses on ensuring the stability and soundness of financial institutions by setting capital requirements, risk management standards, and liquidity rules to prevent failure and protect depositors. In contrast, nonprudential regulation addresses broader market conduct issues, such as consumer protection, anti-money laundering, and fair competition, without directly targeting the solvency of institutions. While prudential regulation aims to safeguard the financial system's integrity, nonprudential regulation seeks to promote fairness and transparency in financial markets.


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.


What is prudential reserve ratio?

the money that held by the bank inorder to meet the needs of money that are banked by customers.


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

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 the difference between prudential regulation and nonprudential regulation?

Prudential regulation focuses on ensuring the stability and soundness of financial institutions by setting capital requirements, risk management standards, and liquidity rules to prevent failure and protect depositors. In contrast, nonprudential regulation addresses broader market conduct issues, such as consumer protection, anti-money laundering, and fair competition, without directly targeting the solvency of institutions. While prudential regulation aims to safeguard the financial system's integrity, nonprudential regulation seeks to promote fairness and transparency in financial markets.


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


When was Prudential Building created?

Prudential Building was created in 1942.


When was Prudential Headquarters created?

Prudential Headquarters was created in 1960.


When was Prudential Securities created?

Prudential Securities was created in 1981.


What is Prudential Financial's population?

The population of Prudential Financial is 39,422.