Prudential regulation and surveillance - essential elements of the banking activity

Abstract

Without being an exhaustive study, the analysis aims to identify the intrinsic correlations of essential notions for the banking field - prudence, prudential supervision, international publishing, and sanctions, quartered obviously in the risk area. We mention that risk, as related to surveillance and caution, represents the possibility of potential, expected, or unexpected events having a negative impact on the bank capital or the bank revenue. We will not use the notion of control, which seems included in that broader surveillance, but we remind that prudential supervision aims at preventing internal or external risk at a credit institution level, and at avoiding their spread. Macroeconomic prudential supervision is an internal management activity, given the evolution of constraints that come from outside, the change of activity place, or the redefinition of prudential rules at national and international level.