Prudential Regulatory Framework

The Prudential Regulatory Framework is a set of rules and guidelines designed to ensure financial institutions like banks and insurance companies remain stable, responsible, and capable of meeting their obligations. It aims to protect customers, maintain confidence in the financial system, and prevent failures by requiring these institutions to hold enough capital, manage risks effectively, and operate transparently. Think of it as a safety net that makes sure financial organizations are resilient, reducing the chance of crises that could hurt the economy and consumers.