BANK REGULATION - regulators with the safety and soundness...

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BANK REGULATION  Banking   regulation  and   reporting   has   deep   historical   roots   and   is  considered essential to the concept of banking as a public trust. Regulation,  deregulation, and reregulation reflects the evolutionary nature of commercial  banking. Banking is interconnected and confidence-sensitive in relation to the  nation's economy and well being so that some form of regulation is deemed  desirable, if not necessary. Bank regulation involves the formulation and issuance by authorized  agencies of specific rules or regulations, under governing law, for the conduct  and structure of banking. Bank supervision relates to the concerns of financial 
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Unformatted text preview: regulators with the safety and soundness of individual banks, involving the general and continuous oversight of the activities of this industry to ensure that banks are operated prudently and in accordance with applicable statutes and regulations. Banking regulation has three basic objectives: safety, stability, and structure. The specific aims of banking regulation is to protect (1) depositors and the deposit-insurance fund, (2) the economy from inappropriate influence of the financial system, and (3) bank customers from the arbitrary control of banks....
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This note was uploaded on 04/10/2012 for the course ECON 101 taught by Professor Gonalez during the Spring '12 term at Université de Bourgogne.

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