Prudential and conduct regulation Effective regulation has a part to play in this restoration of trust. To this end, the Central Bank has recently restructured it financial regulation function into two distinct pillars: prudential regulation and financial conduct.
In the end, we all operate under similar principles, but are surrounded by different realities, circumstances and idiosyncracies. This reminds me of José Ortega y Gasset's expression in Meditations on the Quixote, “I am myself plus my circumstance”. With this, I am not proposing a return to the classical dilemma of rules versus discretion in monetary theory during the 1980s.