(855) 4-ESSAYS

Type a new keyword(s) and press Enter to search

Regulation in the Banking Business and Its Effects


             The Federal Reserve Board is responsible for regulating the activities of state-chartered banks that are members of the Federal Reserve System, bank holding companies, the U.S. operations of foreign banks, and Edge Act and Agreement corporations. The Board approves or denies applications for merger, acquisitions and changes in control by state member banks and bank holding companies and approves or denies applications for foreign operation of member banks. In addition, Congress selected the Federal Reserve to write regulations implementing a number of consumer protection laws such as truth in lending and equal credit opportunity. This has been an area of concern and compliance for BankBoston during its recent acquisition by Fleet Bank.
             The Office of the Comptroller of the Currency (OCC) is the oldest federal banking regulatory agency. It has the authority to approve or deny applications for new national bank charters, for the establishment of branches, and for mergers of national banks. The principal supervisory tools of the OCC are on-site examination and ongoing analysis of national bank operations. The OCC issues rules and regulations concerning bank lending, bank investment, and other aspects of bank operations.
             The Federal Deposit Insurance Corporation (FDIC) protects depositors of failed banks, promotes stability and maintains public confidence in the banking system. The FDIC directs two federal deposit insurance programs - the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF). The basic insured amount for a depositor is $100,000 at each insured financial institution. The BIF has created an insurance fund through income from investments in U.S. Government securities and from annual assessments paid by all insured commercial banks, certain federal and state savings banks, and industrial banks. The FDIC has the authority to examine insured financial institutions either directly or in cooperation with state or other federal authorities.


Essays Related to Regulation in the Banking Business and Its Effects

1. Economics and Government Regulations

... effects throughout the economy. However, U.S banks are now so big, and interconnected that it is very hard for the government to break them up without negative effects to the financial system. According to 5-Bank Asset Concentration for United States, top 5 U.S. banks' total assets increased significantly from 1998 to 2012. They hold about 30% of total U.S. banking assets in 1998, 37% in 2004, 45% in 2008, 50% in 2010, and 47% in ... the economy. The disadvantage of this solution is that the implementation of regulation costs a lot of money to both the government and the big firms. Althou...

  • Word Count: 2282
  • Approx Pages: 9

2. THe Federal Reserve

... of Governors has sole authority over changes in reserve requirements, and it must also approve any change in the discount rate initiated by a Federal Reserve Bank. The Federal Reserve also plays a major role in the supervision and regulation of the U.S. banking system. Banking supervision-the examination of institutions for safety and soundness and for compliance with law-is shared with the Office of the Comptroller of the Currency, which supervises national banks and the Federal Deposit Insurance Corporation, which supervises ... member banks, the U.S. activities of foreign banks, and ...

  • Word Count: 2737
  • Approx Pages: 11
  • Has Bibliography
  • Grade Level: Undergraduate

3. The National Industrial Recovery Act

... up a more powerful country. Knowing the dissatisfaction of the businessmen, Roosevelt did not attend the Chamber of Commerce's meeting. The Chamber refused all of the FDR administration's projects: the social security bill, labor legislation, the two-year extension of the NRA, and the banking bill. The Chamber of Commerce meeting strengthened the idea in Roosevelt that he should break with the businessmen. Roosevelt's and the NRA's position was not only unsafe from the businessmen's side but also from ... delegation, the second point against the NRA was the substance of regulation under...

  • Word Count: 1758
  • Approx Pages: 7
  • Has Bibliography

4. In Capitalism And Freedom, Equality And Efficiency And Everything For Sale

... adverse effects on other countries. Old age and survivor's insurance is also an example of government inefficiency. The g! overnment has no right to give the tax collected from the young to subsidize the old without the considering of the economic situation of the old. Friedman believes that the ... regulation where there is a efficient industry. The author explains that technical innovation not allocative efficiency is the long-term source of economic growth. Innovations often grow in institutions that depart from the perfectly competitive market. From the study made by the Economist Ro...

  • Word Count: 3859
  • Approx Pages: 15
  • Grade Level: Undergraduate

5. Globalization and Its Effects on Caribbean Politics

... the deregulation of markets and globalisation of capital. (a) this has facilitated the emergence of global banking and globally integrated money markets of a supranational economy of stateless monies. Much of the world's savings tend to be intermediated by large private financial institutions .e.g. Barclays Bank, Citibank (b) virtually instantaneous transfers of billions of dollars are a daily occurrence in today's international economy and as a result physical barriers have become permeable to financial regulation ... 's economy as the railways, roads and canals were for the industrial ...

  • Word Count: 2038
  • Approx Pages: 8
  • Has Bibliography
  • Grade Level: Undergraduate

6. Business

... me that in the business world, your actions and practices now can, and will, affect you in the extreme long term. The third case I have chosen to highlight comes from the October 8th edition of Wall Street Journal Online. It deals with the effects and repercussions of accounting fraud. BDO accounting firm settled with the Securities and Exchange Commission for fraud in the auditing of ACLN ltd. Company. BDO Cyprus, and two partners, gave in to the settlement without ... the October 7th edition of the Wall Street Journal, deals with the investigation, by the US Senate, of the SEC's deali...

  • Word Count: 1377
  • Approx Pages: 6
  • Grade Level: High School

7. Keynes and his effect on Europe

... unit of income that is saved. (2) Investment. ( I ) : This is determined by two factors, the Rate of Interest and Business people's expectations about the future. The higher the Rate of Interest, the tendency is that the lower the amount of investment and vice-verse. Business people expectation about the future, if people feel they will make money from investments in the future they will invest, if they fear losses they will not invest. ( 3 ) Government Spending ... involved in the economy and followed Keynes idea's. Some countries were laggards in buying into his ideas, but most countr...

  • Word Count: 3219
  • Approx Pages: 13
  • Grade Level: High School

8. New Deal vs. Share Our Wealth

... agencies, amongst other things, mandated the regulation banking, investments, and industry, created jobs, and established government funded relief programs. After the collapse of the banking industry and the failure of more than 7,000 banks, FDR instituted actions to enable the banks to recover from collapse. In many cases, the government provided loans to the banks to relieve the cause of early foreclosure on home, farm, railroad, insurance company, and other business loans. In addition to providing direct loans ... influenced by a blend of progressive and socialist ideals, its intenti...

  • Word Count: 1142
  • Approx Pages: 5
  • Grade Level: Undergraduate

9. Roosevelt's New Deal

... to produce unavailable to them. The banking industries were also involved by reacting inappropriately to economical trends right before the crash. An increase in credit flexibility might have helped reduce some of the dramatic effects of the stock market crash. The relative reduction in disposable income as well as an inflexible credit system created a dramatic reduction in spending and effectively promoted a drastic reduction in the value of the dollar. When the market crashed, all of ... needed for instituting the programs and organizations introduced in the following years. The New D...

  • Word Count: 3128
  • Approx Pages: 13
  • Has Bibliography
  • Grade Level: Undergraduate

Got a writing question? Ask our professional writer!
Submit My Question