Coordinating Prudential Regulation and Secured Transactions Frameworks

Abstract

Coordination between secured transactions law and rules regulating financial products and institutions is of primary importance to support establishing a sound and inclusive credit ecosystem. This Primer illustrates why coordination between secured transactions law reforms and prudential regulation is needed; introduces the rationale and key tenets of prudential regulatory regimes. Also, specific attention is given to capital requirements and prudential loan-loss provisioning. The Primer also identifies a set of typical issues emerging from the reform experiences of several jurisdictions and presents the key elements of the regulatory strategy to approach such issues.