Supervision & Regulation (2024)

FAQs

What is the regulation and supervision process? ›

Supervision and Regulation: An Introduction

Bank regulation refers to the written rules that define acceptable behavior and conduct for financial institutions. The Board of Governors, along with other bank regulatory agencies, carries out this responsibility. Bank supervision refers to the enforcement of these rules.

Objectives of the Supervision and Regulation function include protecting depositors' funds; protecting consumer rights related to banking relationships and transactions; and maintaining a stable, efficient and competitive banking system.

Supervise is to observe and direct. Regulate is to observe, direct, and make rules to control.

Bank supervision is government oversight of banks. Examiners do not run or manage banks. Rather, they work to understand banks' operations, major risks, how well banks manage those risks and whether banks have sufficient financial and managerial resources.

These core regulatory components—regulator, target, command, and consequences—affect the incentives and flexibility that a regulation provides.

Supervision encourages open, two-way communication and builds team approaches that facilitate problem solving. Monitoring involves regular collection and analysis of data on various aspects of programme activities.

Instructional supervision is an important tool for schools as it helps them in ensuring that their vision and mission are achieved by supervising, training, and empowering teachers so that they can create valuable experiences for their students.

By addressing the five needs of supervision—knowledge of the work, knowledge of responsibilities, the skill to instruct, the skill to lead people, and the skill to improve methods—companies can ensure that their supervisors are well-equipped to manage, support, and inspire their teams.

What is the purpose of supervision may include? ›

It may include reviewing their workload, setting the expected standards, monitoring and reviewing performance, identifying learning and development opportunities and keeping them informed with wider organisational news.

The builder supervised the construction of the house. She supervises a staff of 30 workers.

The Basel II framework operates under three pillars: Capital adequacy requirements. Supervisory review. Market discipline.

The Federal Reserve shares supervisory and regulatory responsibility for domestic banks with the OCC and the FDIC at the federal level, and with individual state banking departments at the state level.

Bank regulation—two distinct types

There are two broad classes of regulation that affect banks: safety and soundness regulation and consumer protection regulation.

Supervision involves a manager and worker meeting regularly to talk about different aspects of their work. The purpose is to discuss workload, support workers wellbeing and to promote staff development.

The regulatory process enters the compliance, interpretation, and review phase after a final rule is published. Individuals and industries affected by a rule, and the agency compliance officers and inspectors who must enforce a rule, may need guidance to better understand the regulatory requirements.

The process for creating federal regulations generally has three main phases: initiating rulemaking actions, developing proposed rules, and developing final rules.

Process supervision is a form of operating system service management in which some master process remains the parent of the service processes.