Prudential Discipline for Financial Firms: Micro, Macro, and Market Structures
Published By: ADBI on eSS | Published Date: December, 18 , 2009The 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(1091) | Download (1389)