mikroprudentsusest
Mikroprudentsusest is a term referring to the supervision and regulation of individual financial institutions. It focuses on the safety and soundness of each bank or insurance company, ensuring they have adequate capital, liquidity, and risk management practices to withstand financial shocks. This approach complements macroprudential policy, which aims to maintain the stability of the entire financial system.
The goal of microprudential supervision is to prevent the failure of individual firms, which could trigger
Key aspects of microprudential supervision include capital adequacy requirements, such as those set by the Basel
Effective microprudential oversight helps to protect depositors and policyholders, maintain public confidence in the financial sector,