When regulators examine a financial institution's risk incurring activities it is engaging in ________ supervision.

Question

Quizplus · Accepted Answer

Microprudential supervision is the supervision of individual financial institutions to ensure their safety and soundness. Regulators examine the risks incurred by the financial institution, its capital adequacy, asset quality, management, earnings, and liquidity. This type of supervision focuses on the specific institution rather than the broader financial system, which is the focus of macroprudential supervision.

When Regulators Examine a Financial Institution's Risk Incurring Activities It