Prudential Regulation

Prudential regulation refers to the setting of standards and supervisory practices designed to minimise the risk of an individual institutional failure and reduce the collateral damage on the financial system as a whole. The Global Financial Crisis demonstrated significant structural flaws in both internal risk management and external supervision. It prompted Lord Turner, the chairman of the Financial Services Authority, to question in an influential report the efficacy of underpinning conceptual frameworks (Turner Review, 2009).  This series maps and tracks the macro-prudential agenda introduced in the aftermath of the GFC, with particular reference to the Basel Committee on Banking Supervision and the impact of this process on national regulatory settings.

European Systemic Risk Board Recommendation on the Macro-Prudential Mandate of National Authorities

The European Systemic Risk Board recommendation provides that Member States should designate a competent authority in national legislation to conduct macro-prudential policy whose objective is to safeguard the stability of the financial system.
Originally Published: 
Monday, January 16, 2012

Australian Prudential Regulatory Authority Releases Discussion Paper on Covered Bonds and Securitization Matters

The Australian Prudential Regulation Authority has published for consultation a discussion paper outlining its proposals to introduce a new prudential standard for authorised deposit-taking institutions that issue covered bonds.
Originally Published: 
Tuesday, November 8, 2011

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