TITLE:
Prudential Regulation in Strengthening the Financial Capacity of Congolese Banks
AUTHORS:
Jospin Kwibuka Bashangwa, Gilbert Niyongabo, Paul Senzira Nahayo, Theogene Nsengiyunva, Denise Kavira Masingo, Ildephonse Sindayigaya
KEYWORDS:
Congolese Banks, Financing the Economy, Congolese Prudential Regulation, Banking Capacity, Financial Stability
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.12 No.10,
October
29,
2024
ABSTRACT: Prudential regulation is crucial for banking oversight, ensuring sector safety and stability. However, its tools are debated. Comparing literature is key, as banking’s unique characteristics drive regulation. Traditional theories, like state preference and portfolio choice, assume complete and perfect markets, making them ill-suited for banking specifics. New “optimal regulation” models incorporate information asymmetries to better address these specifics, though only partially. This evaluation highlights the need for theoretical approaches that fully account for the unique nature of banking.