Prudential regulation
Rules that keep financial institutions safe and sound: capital, liquidity, leverage, risk management and governance.
Overview
Prudential regulation protects depositors, policyholders and the financial system by making sure institutions can absorb losses. It is set internationally by the Basel Committee and implemented by supervisors such as the Federal Reserve, OSFI, the PRA and the ECB.
It connects most directly to Basel framework, Capital review and Supervisory authority.
Check the official sources below for legal scope, applicable dates and exceptions. This entry is an explanatory reference, not legal advice.
Why it matters
Prudential breaches can lead to capital add-ons, restrictions or resolution.
Who it affects
Banks, insurers and investment firms.
Where it sits
Ten linked steps connect where you operate to the proof that you complied.
- 01Jurisdiction
- 02Industry
- 03Activity
- 04Authority
- 05Regulation
- 06Requirement
- 07Guidance
- 08Control
- 09Evidence
- 10Enforcement
Connections
The terms most closely tied to Prudential regulation. Select one to open it.
What to do about it
- 1List the laws and authorities in this area that apply to you.
- 2Map each obligation to a control and owner.
- 3Monitor change and enforcement in the area.
- 4Report coverage and gaps to management.
From requirement to evidence.
Prudential obligations are mapped to treasury, risk and finance controls.
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