Banking · Financial Regulation
Regulators play an important role in bank governance, but they do not replace internal governance structures. The most appropriate description of the regulator's role in corporate governance is to:
- 1Approve every transaction entered into by a regulated entity
- 2Act as the sole decision-maker in board appointments of all banks
- 3Set prudential norms, supervise compliance, and promote systemic stability✓
- 4Directly conduct the daily management of banks
Correct answer
Set prudential norms, supervise compliance, and promote systemic stability
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