High capital and provision requirements for certain transactions, or prohibition of such transactions, should also be introduced for prudential reasons.

Prudential controls on capital flows make a lot of sense.

A fashionable approach was known as twin peaks, whereby one regulator handled prudential regulation setting capital requirements while another oversaw adherence to business rules.

For example, audit, entry and annual fees, tax on business profit, prudential requirements such as minimum capital, bank guarantee and minimum managerial experience as required in some States.

Direct interventions, restrictions on short term capital inflows, capital gains taxes, and stabilizing prudential banking regulations will all have to be considered.

When dealing with surges of potentially destabilizing capital inflows, capital controls are a no no, but something called prudential regulation is quite okay.

This suggests that capital controls and prudential policies can complement each other, contrary to what conventional wisdom often assumes.

The best known tools for this are margin requirements and minimum capital requirements.

The United States is emphasizing higher capital requirements.

But the paper also shows that domestic prudential policies such as capping home mortgage loans at a certain percentage of the property s value, or increasing banks capital requirements during economic upswings can be effective at restraining lending booms.

Smarter capital requirements better Basel rules aren t the answer.

That, in turn, avoids triggering requirements of more bank capital.

America s trade agreement with Chile, for example, impedes Chile s use of capital controls even though the International Monetary Fund now recognizes that capital controls can be an important instrument of macro prudential policy.

Similarly, banks would have incentives to game capital adequacy requirements by manipulating how capital and assets are defined.

Domestic financing covered only 25 per cent of capital investment requirements.

Counter cyclical capital requirements fit with this idea, and a range of indicators could be used to calibrate the increase in capital requirements, coupled perhaps with some discretion.

To understand the precise problem, you must dip into the latest details of the Prudential Regulatory Authority s capital shortfall exercise with eight major UK banks.

Thus, the IMF s recommendation to use capital controls only after exhausting interest rate adjustment, reserve accumulation, and prudential regulation is out of step with the profession.

The financial institutions are required to comply with the requirements of section 18.3 of Prudential Regulations 2002, which pertains to the Know your customer policy .

No working capital requirements have been included in this budget submission to leave room for other priority expenditure requirements.

In addition, prudential regulations have lagged behind.

At the source, capital requirements for currency mismatches in portfolios, together with margin requirements on foreign exchange derivatives, make sense.

The basic conclusion of all of these documents is that regulations of cross border capital flows can complement macroeconomic policy and so called macro prudential financial regulations.

As for financial supervision, stability would be guaranteed by ensuring that individual financial institutions adopt sound prudential rules that preserve capital cushions commensurate with their risk exposure.

And equity capital requirements for large, systemically important financial institutions remain too low.

The new doctrine is called macro prudential regulation.

WASHINGTON, DC European leaders are convinced that bank capital is expensive, in the sense that raising capital requirements would slow economic growth.

All this financial engineering would avoid the obsolete capital requirements that burden banks operation.

a Resource requirements for 1994 1995 are presented under capital expenditures (see sect. 29).

The proposed Basel III regulations set wholly insufficient minimum capital requirements and maintain a failed approach to adjusting the requirements to risk.

Now that the European Banking Authority has finally issued new prudential rules, they can get about the business of raising the capital they need as a buffer against losses.

There have been some increases in capital requirements but far short of what is needed.

There seems to be little appetite for proposals to vary capital adequacy requirements counter cyclically.

(iii) Ability to save and generate capital investment in relation to requirements for infrastructure development

Looking north from the fountain, viewers see some of the tallest buildings in the United States (Aon Center, Two Prudential Plaza, and One Prudential Plaza).

Surely, as the economists Arvind Subramanian and John Williamson have written, emerging markets deserve the IMF s help in designing better prudential controls over capital inflows instead of having their wrists slapped.

A third role for the IMF is macro prudential supervisor.

A similar institutional design could be adopted for prudential policies.

51. Two fundamental requirements for achieving sustainable development in the developing world were capital and technology.

Examples of such counter cyclical prudential regulation would be loan loss reserves to be put aside at the beginning of the loan and appropriate collateral requirements for over the counter derivatives.

Opponents of prudential oversight of systemic risk take two different positions.

The margin for macroeconomic, prudential, and operating error is similarly small.

Irresponsible risk taking and excessive greed outpaced prudential regulation and supervision.

The crisis has underscored the utmost importance of macro prudential regulation.

The banks claim that higher capital requirements and other regulations will drive up the cost of credit.