Prudential Discipline for Financial Firms: Micro, Macro, and Market Structures

Published By: ADBI on eSS | Published Date: December, 18 , 2009

The recent global financial crisis reflects numerous breakdowns in the prudential discipline of financial firms. This paper discusses ways to strengthen micro- and macroprudential supervision and restore credible market discipline. The discussion notes that microprudential supervisors are typically assigned a variety of goals that sometimes have conflicting policy implications. In such a setting, the structure of the regulatory agencies and the priority given to prudential goals are critical to achieving those goals. [ADBI Working Paper 176]

Author(s): Larry D. Wall | Posted on: Oct 18, 2010 | Views(723) | Download (1131)

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