Banking Regulation

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Banks and other type financial intermediaries provide the most valuable intermediation function in the economy. That is, the excess funds are channeled from depositors to firms and entrepreneurs. The safety and soundness of financial markets is vital for the efficient and smooth functioning of the whole economy. For this reason, banking is the most regulated industry in the U.S. and elsewhere.

Contents 1 Banking Regulatory Agencies in the U.S. 2 Basic components of Banking Regulation 3 References 4 See Also

[edit] Banking Regulatory Agencies in the U.S.

In the U.S. some of the agencies involved in banking regulation are

• Fed
• OCC
• FDIC

[edit] Basic components of Banking Regulation

Basic categories of banking regulation are

1. Deposit insurance
2. Capital requirements
3. Chartering
4. Disclosure requirements
5. Branching restrictions

[edit] References

• Mishkin, F. S. and S. G. Eakins (2002), Financial markets and Institutions, 4th edition, Addison Wesley.

[edit] See Also

• Market discipline
• Too-big-to-fail
• CAMELS ratings
• Bank condition