Click here for search results
Prudential regulation and banking supervision : building an institutional framework for Banks, Volume 1
 
Author:Polizatto, Vincent P.; Date Stored:1990/01/01
Document Date:1990/01/31Document Type:Policy Research Working Paper
SubTopics:Environmental Economics & Policies; Financial Crisis Management & Restructuring; Banks & Banking Reform; Banking Law; Financial IntermediationLanguage:English
Major Sector:FinanceReport Number:WPS340
Sub Sectors:Other FinanceCollection Title:Policy, Planning and Research Department working papers ; no. WPS 340
Volume No:1  

Summary: Economic deregulation and financial liberalization are important for a country to develop a viable and robust financial system. But deregulation will remove the protections previously afforded the banking system. Increased competition, a changing price structure, new market entrants and other factors will increase the risks banks assume and the instability of the financial system. So, the government's goal to ensure the stability of the financial system is of paramount importance. Prudential regulation and supervision are designed to remove or lessen the threat of systemic instability. In addition, the safety and soundness of the banking system must be supported by an adequate legal framework governing a bank's contractual relationship with its customers. Satisfactory accounting and auditing standards are also crucial to ensure that financial statements reflect each financial institution's condition. Different countries have adopted different models of bank regulation and supervision. Organizational approaches also vary from country to country. However, no model will be effective if significant political interference is permitted. The primary line of defense against banking insolvency and financial system distress is the quality of management within the banks themselves. Therefore, efforts to strengthen the financial system must also focus on strengthening management through a process of institutional development.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 37 pagesOfficial version*2.59 (approx.)
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/RAVRR8PCL0