Prudential Policy

Jean Rochet

Monetary and Economic Studies, 2005, vol. 23, issue S1, 93-119

Abstract: This paper studies the rationale behind prudential policies in the banking sector. The main components of these prudential policies are deposit insurance, solvency regulations, and emergency liquidity assistance by the central bank, acting as a lender of last resort. We discuss the institutional arrangements that are necessary to limit the frequency and extent of individual bank failures as well as those of systemic banking crises.

JEL-codes: E52 E58 G21 G28 (search for similar items in EconPapers)
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:ime:imemes:v:23:y:2005:i:s1:p:93-119

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