When regulators engage in microprudential regulation, they focus on

A. the safety and soundness of each customer of a financial institution.

B. the credit standards of individual loans.

C. the safety and soundness of individual financial institutions.

D. the safety and soundness of each asset the financial institution holds.

Question

Business

Fletcher Spence

30 August, 17:38

When regulators engage in microprudential regulation, they focus on

A. the safety and soundness of each customer of a financial institution.

B. the credit standards of individual loans.

C. the safety and soundness of individual financial institutions.

D. the safety and soundness of each asset the financial institution holds.

+4

Answers (1)

Know the Answer?

Sophie Townsend · Answer 1

A.

Explanation:

Microprudential regulations refers to making sure that the balance sheets or "books" of individual institutions are robust to shocks. Meaning that the regulators that usually engage in this are focusing on the safety and soundness of each customer of a financial institution, by making sure the institutions do not close and the customers lose their money.