The Role of the Precautionary Principle in Mitigating Financial and Banking Crisis

The theory of the precautionary principle has developed. In its implementation, the precautionary principle is used to deal with hazards in the environmental fields and has been widely used in health and food technology. In general, the precautionary principle is understood as making decisions in encountering threats or situations that are dangerous and uncertain. Likewise, the financial and banking crisis is a phenomenon that dangerous and often threatens the stability of a state. In extreme cases, crises create a panic that makes no sense or can even be made the economy of the state to collapse. This article will discuss the precautionary principle theory and its role in mitigating the threat of a financial and banking crisis