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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
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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.

User Inanda Menezes
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1 Answer

5 votes

Answer:

A.

Step-by-step 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.

User Charlie Stanard
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