All governments have a regulatory framework governing the financial sector in order to ensure its stability and contribution to socio-economic development. Regulation aims to minimize the risk of welfare losses due to sub-optimal performance of the financial sector. For example, bank owners and/or fund managers may show opportunistic behaviour by taking excessive risks with people’s savings or investor funds. In addition, bank runs may destabilize the whole financial system, affecting its safety and soundness. Further, there is the need to assure a competitive market structure where a well-functioning financial system provides important capital allocation contributions to growing economic agents as well as payment transfer services to the real economy. Therefore, prudential regulation and supervision of financial institutions servicing the agricultural sector, as part of the whole economy, are required.