Prudential and Capital Risk

The terms

• Prudential Regulation

  Prudential regulation is the set of rules that keep financial firms financially sound, covering capital, liquidity, risk management and governance, so they can survive losses and protect depositors, policyholders and the wider system.

  Domain: Risk Management

• Regulatory Capital

  Regulatory capital is the amount and type of capital that supervisors require a financial firm to hold against its risks, defined by their rules about what counts and how much is needed.

  Domain: Risk Management