Banking Standards

Definition ∞ ‘Banking Standards’ refers to the established rules, regulations, and best practices that govern the operation of financial institutions. These standards are designed to ensure the safety, soundness, and stability of the banking system, protect depositors, and prevent illicit financial activities. They often dictate capital requirements, risk management protocols, and consumer protection measures.
Context ∞ The interaction between traditional banking standards and the burgeoning digital asset sector is a focal point of current regulatory discussions. As financial institutions increasingly engage with cryptocurrencies and related technologies, there is ongoing scrutiny regarding how existing banking standards should be adapted or supplemented. Regulators are assessing whether current frameworks adequately address the unique risks and opportunities presented by digital assets to ensure systemic stability.