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Non prudential regulation covers business behaviour but does not involve the govt taking responsibilities for the financial soundness of the organization
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ViviNon-prudential regulations refer to rules and guidelines that are not directly related to the safety and soundness of financial institutions, but rather focus on other aspects such as consumer protection, market conduct, and competition. These regulations aim to promote transparency, fairness, and efficiency in the financial markets, and may include requirements related to disclosure, advertising, and customer service standards. Non-prudential regulations are important for maintaining market integrity and ensuring that financial institutions operate in a manner that is ethical and in the best interest of consumers.
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