What supervisory and regulatory authority does the Fed have under current law?
Soln. Supervisory authority - The main purpose of the supervisory authority of Fed is to ensure and validate the safety and overall performance of the banking organization. Supervision of banking organization is done both through off-site and on-site monitoring, Supervision and examination of the banking organizations is done on regular basis. There are different policies to safeguard the banking organizations.
Regulatory authority - Regulatory authority ensures that organizations that are under Fed supervision are abide by the applicable laws and regulations. There are several standards set by the Fed regulatory bodies for the organizations through policy, guidelines, rules and regulations. These regulations are in effect as a result of the legislation passed by the Congress. Recent example of such legislation passed is Dodd-Frank Act.
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