Prudential supervision : what works and what doesn't

Bibliographic Information

Prudential supervision : what works and what doesn't

edited by Frederic S. Mishkin

(A National Bureau of Economic Research conference report)

University of Chicago Press, c2001

Available at  / 44 libraries

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Note

Papers presented at a conference held at Cheeca Lodge, Islamorada, FL, Jan. 13-15, 2000

Includes bibliographical references and indexes

Description and Table of Contents

Description

Since banking systems play a crucial role in maintaining the overall health of the economy, the adverse effects of poorly supervised systems may be quite severe. Without some form of vigilant external oversight, banking systems could fall prey to excessive risk taking, moral hazard, and corruption. Prudential supervision provides that oversight, using government regulation and monitoring to ensure the soundness of the banking system and, by extension, the economy at large. The contributors to this thoughtful volume examine the current state of prudential supervision, focusing on fundamental issues and key pragmatic concerns. Why is prudential supervision so important? What kinds of excess must it guard against? What particular forms does it take? Which of these are the most effective deterrents against mismanagement and system overload in today's rapidly shifting financial climate? The contributors foresee a continued movement beyond simple regulatory rules in banking and toward a more active evaluation and supervision of a bank's risk management practices.

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