The new doctrine is called macro prudential regulation.

Finally, in the area of financial sector supervision and regulation, governments should forge ahead on reform of micro prudential (individual entities) and macro prudential (globally and nationally systemic) regulation.

Irresponsible risk taking and excessive greed outpaced prudential regulation and supervision.

The crisis has underscored the utmost importance of macro prudential regulation.

It follows, then, that prudential regulation and competition policy in banking should be coordinated.

Turkey s Banking Regulation and Supervision Agency and other authorities have also adopted macro prudential measures.

The new reform orthodoxy is macro prudential regulation of commercial banks by the central bank.

The National Security Act 1992 Financial Institutions Act 1992 Prudential Regulation 2002 Bhutan Penal Code 2004.

Prudential regulation discriminates on the basis of the transaction s currency of denomination or maturity, and that is good.

Improving the ability of financial markets to self correct to sustainable values is the entire point of prudential regulation.

And our understanding of macro prudential regulation and how that affects financial stability is still at a very early stage.

UNCTAD is providing assistance to Burundi to establish its strategies for legislation and the prudential regulation of its insurance sector.

Governments brought commercial banks under prudential regulation in exchange for public provision of deposit insurance and lender of last resort functions.

When dealing with surges of potentially destabilizing capital inflows, capital controls are a no no, but something called prudential regulation is quite okay.

But the extent of intervention they condone differs, reflecting their different views concerning how dysfunctional the prevailing approach to supervision and prudential regulation is.

A fashionable approach was known as twin peaks, whereby one regulator handled prudential regulation setting capital requirements while another oversaw adherence to business rules.

Thus, the IMF s recommendation to use capital controls only after exhausting interest rate adjustment, reserve accumulation, and prudential regulation is out of step with the profession.

In the United States, for example, there is recognition of the importance of macro prudential regulation, but not of giving this authority to the Federal Reserve. The newly passed US financial reform legislation entrusts macro prudential policy to a new Financial Stability Oversight Council.

Indeed, proportionality is an important aspect of regulation, enabling prudential measures that, rather than exceed or underestimate, are commensurate with the risks that need to be addressed.

They are less convinced that recent financial innovation has created large gains (except for the finance industry itself), and they doubt that prudential regulation can ever be sufficiently effective.

Second, emerging countries must develop more effective macroeconomic frameworks, including better macro prudential regulation and a broader monetary policy framework that takes into account asset prices and financial market stability.

In addition, prudential regulations have lagged behind.

A global system for prudential regulation and supervision a revamped IMF managing a global reserve currency, coordinating global macroeconomic policy, and providing agile credit lines and an international debt court all of these must be on the agenda.

Looking north from the fountain, viewers see some of the tallest buildings in the United States (Aon Center, Two Prudential Plaza, and One Prudential Plaza).

The crisis has underscored the utmost importance of macro prudential regulation. Although our central bankers are not perfect judges of financial stability, they are still the people who are in the best political and institutional position to ensure it.

But it does not help to solve major financial problems, and those that it does address (short term, overnight financing) could be dealt with more directly, with a more focused tax, better rules governing those transactions, and improved prudential regulation.

Prudential controls on capital flows make a lot of sense.

A third role for the IMF is macro prudential supervisor.

A similar institutional design could be adopted for prudential policies.

Opponents of prudential oversight of systemic risk take two different positions.

The margin for macroeconomic, prudential, and operating error is similarly small.

Both bodies have served to enhance the operational design and implementation of macro prudential policies.

Regulation 10.2

Domestic regulation

Legal regulation

Regulation 5.1

Regulation 5.2

Regulation 5.3

Regulation 11.1

Regulation 11.2

Regulation 1.2

Other emerging countries, like Peru, have tightened domestic prudential regulations with the same aim in mind.

Since there are advantages in combining economic regulation with technical regulation, economic regulation should probably not be organized as a stand alone function.

While prudential regulation and supervision can never be perfect, extending such oversight to hedge funds and other unregulated institutions can still moderate the downsides. If things get too complicated for regulators, the job can always be turned over to the private sector, by relying on rating agencies and financial firms own risk models.

Regulation 6.10 (a)