The requirement and observation of standards designed to ensure the stability and soundness of a financial system is called:

Question

Quizplus · Accepted Answer

Prudential supervision refers to the regulations and oversight of financial institutions by governing bodies to ensure the stability and soundness of the financial system. This includes monitoring and enforcing adherence to financial standards and guidelines, as well as assessing and mitigating risk. Fiscal and monetary policies refer to broader economic policies, while the Basel accord is a specific set of international banking regulations.

The Requirement and Observation of Standards Designed to Ensure the Stability