Prudential supervision: what works and what doesn't

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 volume examine the current state of prudential supervision, focusing on fundamental issues and key pragmatic concerns.