National bank regulation of commercial bank Term Paper

National bank regulation of commercial bank - Term Paper ExampleNevertheless, every banking institution come under the regulatory sheep pen either under a state government of federal body. The regulations argon enforced in many respects and cover many aspects. The Federal allow for The Federal Reserve, the Fed, can be called as bankers bank and a regulator of majority of commercial banks and financial institutions and also countrys money manager. The Federal Reserve is the fall in States central bank. This is the biggest regulatory body of the nation. All discipline and commercial banks take cue from the Fed in their day to day activities. The Feds mandates aims at promoting sustainable growth, stableness of prices, high levels of employment, and maintain the purchasing power of the dollar keeping moderate long-term interest rates. In the U.S, the term National bank has a sort out definition those who come under the purview of the National Bank toy. They are supervised by the O ffice of Comptroller of the currency (OCC), under US exchequer Department. Banks forms under this act are required to follow the designation National Association or in short N.A. in their title so as to indicate their affiliation with the governing body. Many banks however are regulated by the state governments under respective state laws. Deposits of National and State banks are insured by the FDIC, known as Federal Deposit Insurance Corporation. It should be noted that banking regulations in US are not governed by a single body unlike UK or Japan. The U.S banking sector works under the highly-regulated environments in the world. Some of them can be listed as anti-money laundering, anti-usury impart, fraud prevention, promotion of lending to lower-income population, disclosures and many more. It will be worthwhile to have a look at some of the regulations that are in force to regulate the various aspects of national or commercial banks. Anti-Money Laundering and Anti-terrorism Cer tain acts are promulgated to control money laundering activities which are stated as per the following. (Regulations) The Bank Secrecy roleplay This act has been formulated keeping in mind money laundering aspects where in all national or commercial establishments are required to wait on government agencies. Banks under this act keep necessary records that are necessary to detect the suspicious activities of the transactions exceeding $10,000 on aggregate daily basis. (Regulations) regular army Patriot Act This act necessitates banks to place limits on new accounts until the identity of account holder is verified. (Regulations) Deposit Account Insurance Regulation It was GlassSteagall Act who paved the way for Federal Deposit Insurance Corporation (FDIC) for insuring deposits at commercial banks. In 1933, U.S was the first country to implement insurance for deposit holders to shelter the depositors from bankruptcy of the banks. (Regulations) Regulation D or Withdrawal Limits Fed eral Reserve has put a limit on number of withdrawals and transfers from any saving or money market account. This regulation is applicable to all U.S banking institutions who offer such accounts. The limit is placed at six for all outgoing transactions by any method. Lending Regulations Regulation Z or the Truth in Lending Act (TILA) of 1968 is meant for consumer credits that informs the standard interest rate