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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.
Wiki User
∙ 15y ago
Wiki User
∙ 9y agoPrudential regulation is a legal framework for financial operations. Protecting the stability of the financial system is the objective of prudential regulation.
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The main indicators of prudential regulations are capital adequacy, liquidity and risk profile.
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 Tamara Burdisso written?
Tamara Burdisso has written: 'Prudential regulations, restructuring and competition' -- subject(s): Econometric models, Banks and banking
What is prudential reasons?
what is prudential?
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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 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.
When was Prudential Financial created?
Prudential Financial was created in 1875.
What is the population of Prudential plc?
The population of Prudential plc is 26,000.
When was Prudential plc created?
Prudential plc was created in 1848.
