Supervision & Regulation (2024)

FAQs

Supervision & Regulation? ›

REGULATION. Bank regulation refers to the written rules that define acceptable behavior and conduct for financial institutions. The Board of Governors, along with other bank regulatory agencies, carries out this responsibility. SUPERVISION. Bank supervision refers to the enforcement of these rules.

REGULATION. Bank regulation refers to the written rules that define acceptable behavior and conduct for financial institutions. The Board of Governors, along with other bank regulatory agencies, carries out this responsibility. SUPERVISION. Bank supervision refers to the enforcement of these rules.

Supervision involves examining the financial condition of individual banks and evaluating their compliance with laws and regulations. Bank regulation involves setting rules and guidelines for the banking system.

The Division of Supervision and Regulation exercises and oversees the Board's supervisory and regulatory authority over a variety of financial institutions and activities with the goal of promoting a safe, sound, and stable financial system that supports the growth and stability of the U.S. economy.

Objectives of the Supervision and Regulation function include protecting depositors' funds; protecting consumer rights related to banking relationships and transactions; and maintaining a stable, efficient and competitive banking system.

Three main approaches to regulation are “command and control,” performance-based, and management-based. Each approach has strengths and weaknesses.

Supervision is the act or function of overseeing something or somebody. It is the process that involves guiding, instructing and correcting someone. A person who performs supervision is a "supervisor", but does not always have the formal title of supervisor. A person who is getting supervision is the "supervisee".

Behavior regulation refers to the ability to manage and control one's own behavior, positive and negative emotions, and responses in various situations. Both children and adults can experience challenges with behavior regulation.

Most simply defined, regulation is to adjust, manage or control something so it works well.

What are 3 things the Federal Reserve is responsible for regulating? ›

Today, the Fed is tasked with managing U.S. monetary policy, regulating bank holding companies and other member banks, and monitoring systemic risk in the financial system. The seven-member Board of Governors, the system's seat of power, is based in Washington, DC, and currently led by Fed Chair Jerome Powell.

There are numerous agencies assigned to regulate and oversee financial institutions and financial markets in the United States, including the Federal Reserve Board (FRB), the Federal Deposit Insurance Corp. (FDIC), and the Securities and Exchange Commission (SEC).

Bank supervision at the federal level is carried out by three agencies: the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC).

If regulation sets the rules of the road, supervision is the process that ensures obedience to these rules (and sometimes to norms that exist outside these rules entirely). Regulation is the highly choreographed process of generating public engagement in the creation of rules.

The Goals of Supervision

Promoting supervisee growth and development through teaching. Protecting the welfare of the client. Monitoring supervisee performance and gatekeeping for the profession. Empowering the supervisee to self-supervise and carry out the above goals as an independent professional.

These core regulatory components—regulator, target, command, and consequences—affect the incentives and flexibility that a regulation provides.

Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context.

Regulation/Control as a function of communication means being able to use language, gestures, and emotions to manage individual or group activities, such as a parent telling a child not to misbehave or a policeman directing pedestrians not to jaywalk but cross on the pedestrian lane.

(a) "Supervision" means to instruct an employee or subordinate in his duties and to oversee or direct his work, but does not necessarily require the immediate presence of the supervisor.

Examples of regulatory compliance laws and regulations include the Payment Card Industry Data Security Standard (PCI DSS), Health Insurance Portability and Accountability Act (HIPAA), Federal Information Security Management Act (FISMA), Sarbanes-Oxley Act (SOX), EU's General Data Protection Regulation (GDPR) and the ...