Ask Dr. Econ October Federal Reserve Bank of New York Banking Institutions and Their Regulators. Furlong, Fred. Harshman, Ellen, Fred C. Yeager, and Timothy J. Louis, October Skip to content Readability Tools. Reader View. But not all investments are considered securities under the securities laws. For example, some products, such as notes that have been issued by a bank, may not be securities and are regulated by the banking authorities.
If you have a question or want to file a complaint, the following tells you how you can contact each banking regulator. The Federal Deposit Insurance Corporation's website can help you determine the regulator for a particular bank and trace inactive banks to their successor institutions.
The Board of Governors of the Federal Reserve oversees, among other entities, state-chartered banks and trust companies that belong to the Federal Reserve System. The Federal Deposit Insurance Corporation regulates state-chartered banks and state-chartered savings associations that do not belong to the Federal Reserve System.
Each agency has specific responsibilities, allowing them to function independently. Though the effectiveness and efficiency with which these regulatory entities manage financial institutions are sometimes questioned, each was formed to help achieve the overall goal of providing sensible regulation of markets and protection for investors and consumers.
Probably the most well-known of all the regulatory agencies is the FRB. The Fed is responsible for influencing liquidity and overall credit conditions. Its primary monetary policy tool is open market operations that control the buying and selling of U.
Treasury and federal agency securities. Such purchases and sales determine the federal funds rates and alter the level of reserves available. The FRB is also responsible for regulating and supervising the U. This agency is also responsible for analyzing and supervising the safety and stability of financial institutions, performing consumer protection functions, and managing failed banks. The FDIC is funded by the premiums paid by banks and thrift institutions for deposit insurance coverage and by the earnings generated from investments in U.
Treasury debt securities. The OCC primarily functions to regulate, supervise, and offer charters to banks that operate in the U. These functions help to ensure the overall stability and safety of the U. The OCC oversees several areas including capital, asset quality, management, earnings, liquidity, sensitivity to market risk, information technology, compliance, and community reinvestment.
They are funded by national banks and federal savings associations, who pay for examinations and processing of their corporate applications. The OCC also receives revenue from investment income primarily in U.
Treasury securities. This agency provides efficient and competitive futures markets and protects traders from market manipulation and other fraudulent trading practices. The CFTC oversees a variety of individuals and organizations, including swap execution facilities, derivatives clearing organizations, designated contract markets, swap dealers, commodity pool operators, and other entities. Starting in , the agency combined with the SEC, the overall supervisory agency of stock exchange trading, to help regulate single stock futures.
The SEC was established in by the Securities Exchange Act and is among the most powerful and comprehensive financial regulatory agencies. The SEC enforces federal securities laws and regulates a large portion of the securities industry, including the U. The agency protects investors against fraudulent and manipulative practices in the market, promotes full public disclosure, and watches over corporate takeovers in the United States.
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