Bank regulation refers to the written rules that define what is acceptable behavior for financial institutions. Ah, but don't worry; I'll explain it all "In Plain English. I'm here to introduce you to one of the most complex but effective institutions in the United States.
The Federal Reserve System is the central bank of the United States and arguably the most powerful financial institution in the world. I hope my "plain English" style has helped you make sense of the complex, yet effective, design of the Federal Reserve System, and how we contribute to a healthy economy.
He kept the economic situation from turning into a depression.
The act subjects all depository institutions, not just member commercial banks, to reserve requirements and grants them equal access to Reserve Bank payment services. Monetary policy is put into effect partly by influencing how much interest the private banks charge each other for the lending of these funds.
Inthe Right to Truth in Savings Act empowered the Fed to require that banks disclose account information to consumers, including the annual percentage yield; regulated advertising of savings accounts; and prohibited certain methods of calculating interest. The seven board members, the president of the Federal Reserve Bank of New York, and four of the remaining 11 bank presidents are members.