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This question is worth 2 marks please show full working out providing an example and explaining its purpose to gain both marks. Thank you. The

This question is worth 2 marks please show full working out providing an example and explaining its purpose to gain both marks. Thank you.

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The balance sheet for Goliath Bank is given below. $ billion Assets Liabilities Loans 1,000 Deposits 700 Gov. Bonds 250 Borrowing 600 Reserves 100 Equity 50(v) What is meant by prudential regulation? Provide one example of a prudential regulation and explain its purpose. (2 marks)

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