Economics · Financial Regulation
Prudential regulation seeks to ensure safety and soundness, while conduct regulation focuses more on fairness and treatment of customers. The distinction is important because:
- 1conduct regulation is relevant only to capital markets
- 2prudential regulation applies only to foreign banks
- 3conduct regulation fully replaces prudential regulation
- 4prudential issues concern stability, while conduct issues concern market behavior and consumer protection✓
Correct answer
prudential issues concern stability, while conduct issues concern market behavior and consumer protection
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