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Tighter prudential regulation

Prudential regulation implies that banking institutions must have a “soul”, a gatekeeper with good corporate governance
Strong corporate governance to focus on the composition, quality of board members
Otherwise, even adequately capitalised banks can be prey to agency hazards
KYC procedures would have to be deepened and enlarged
Enthrone strict monitoring procedure
Apply fully the use of the early warning system to identify not only capital needs but where risks resides on the CAMELS
Enlarge stress testing to include sensitivity analysis
enforcement for timelines for banks to correct exposure to prudential requirement
Sustain target audits on credit (concentration exposure), market risks (especially for foreign exchange exposure)
Need for a legal framework for crowdfunding; and mutual fund platforms and rules for the identification of users.
This should identify the backstops as basis for a instituting prudential requirements for fintech and shadow transactions

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