THE CRITICAL FAILINGS in BANKING REGULATION
Throughout the history of financial crises, prudential regulators and central banks have been considerably involved in developing a wide spectrum of regulatory tools to ensure the smooth functioning of the banking sector and maintain financial stability. Deposit insurance, Lender of Last Resort (LLR), prudential regulation and supervision have been extensively discussed in academic and literature as the three major components of government financial safety net. In the midst of these regulatory tools, the regulation of bank capital stands out as […]