MACRO PRUDENTIAL POLICY: A COMPARISON BETWEEN THE US AND UK, AND THE LESSON FOR NIGERIA
Samuel Dame & Philemon Mide
Department of Accountancy,
Federal Polytechnic Bali, Taraba StateEmail:samuedame19@gmail.com & midadino@yahoo.com
ABSTRACT
Over the years the focal point of prudential policies has been on micro-issues. But the consequences financial crises made advances economies proactive on addressing inadequacies of existing prudential guidelines. In doing that, prudential guidelines are expanded to include macro-issues (Basel III), which focus on the macro-prudential regulation, ensure the resilience and stability of the financial system and lessen the overreliance on taxpayer money to salvage the banks during these periods. BASEL III requirements however, range from increased in capital adequacy and common equity ratios, deposit insurance, introduction of TLAC, Bail-in/living will, Buffers and countercyclical buffers among others. This paper made the comparison of UK and US prudential guideline with the view of drawing lessons for Nigeria.
Keywords: Financial crisis,Macro prudential policy, financial stability, capital buffers
