TY  - JOUR
AU  - Mishkin, Frederic S
TI  - Prudential Supervision: Why Is It Important and What are the Issues?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7926
PY  - 2000
Y2  - September 2000
DO  - 10.3386/w7926
UR  - http://www.nber.org/papers/w7926
L1  - http://www.nber.org/papers/w7926.pdf
N1  - Author contact info:
Frederic S. Mishkin
Columbia University
Graduate School of Business
Uris Hall 817
3022 Broadway
New York, NY 10027
Tel: 212-854-3488
Fax: 212/662-8474
E-Mail: fsm3@columbia.edu
M1  - published as Frederic S. Mishkin. "Prudential Supervision: Why Is It Important and What Are the Issues?," in Frederic S. Mishkin, editor, "Prudential Supervision: What Works and What Doesn't" University of Chicago Press (2001)

AB  - This paper outlines what problems asymmetric information creates for the financial system and shows and shows that the presence of asymmetric information explains why banks are so important.  The paper then goes on to explain why prudential supervision of these institutions is needed, and what forms it takes.  The paper ends by outlining the key issues in the design of prudential supervision and uses them to organize a general discussion of the papers in this conference volume, providing a brief overview of their content.  The linkages between these papers are explored, which highlights some general conclusions.
ER  -