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.

If they were placed under STATE supervision, it would come under the supervision of the state department of corrections.

Type your answer here... The supervision of local governments is a function of state governance because

Barbara Stallings has written:

'Globalization and liberalization' -- subject(s): Finance, Globalization, International finance

'Global Change, Regional Response'

'Banker to the Third World' -- subject(s): American Investments, American Loans, History

'Financial regulation and supervison in emerging markets' -- subject(s): Banks and banking, State supervision

'Financial regulation and supervision in emerging markets' -- subject(s): Banking law, Banks and banking, Economic conditions, State supervision

'Class conflict and economic development in Chile, 1958-1973' -- subject(s): Economic conditions, Economic policy, Politics and government, Social conditions, Social conflict

Andrew Cornford has written:

'The role of the Basle Committee on banking supervision in the regulation of international banking'