Prudential Supervision

Prudential supervision refers to the oversight and regulation of financial institutions, such as banks and insurance companies, to ensure their stability and soundness. Its main goal is to protect the financial system and consumers by ensuring these institutions manage risks effectively, maintain adequate capital, and comply with laws. Regulators monitor their performance and practices to prevent failures that could lead to economic disruption, ultimately promoting confidence in the financial system. This supervision helps safeguard savings, investments, and overall financial health in the economy.