What is US financial regulations?
According to the Federal Reserve, financial regulation has two main intended purposes: to ensure the safety and soundness of the financial system and to provide and enforce rules that aim to protect consumers.
U.S. banking regulation addresses privacy, disclosure, fraud prevention, anti-money laundering, anti-terrorism, anti-usury lending, and the promotion of lending to lower-income populations. Some individual cities also enact their own financial regulation laws (for example, defining what constitutes usurious lending).
Under the law, agencies enforce the Financial Privacy Rule, which governs how financial institutions can collect and disclose customers' personal financial information; the Safeguards Rule, which requires all financial institutions to maintain safeguards to protect customer information; and another provision designed ...
Certain regulatory report information is used for public disclosure so investors, depositors, and creditors can better assess the financial condition of the reporting banks.
Financial law is the law and regulation of the commercial banking, capital markets, insurance, derivatives and investment management sectors.
The Federal Reserve is responsible for supervising--monitoring, inspecting, and examining--certain financial institutions to ensure that they comply with rules and regulations, and that they operate in a safe and sound manner.
Common bank regulations include reserve requirements, which dictate how much money banks must keep on hand; capital requirements, which dictate how much money banks can lend; and liquidity requirements, which dictate how easily banks can convert their assets into cash.
You can read the full text of the Federal Register and the Code of Federal Regulations (CFR) on the web, find them in libraries, or purchase them from the Government Printing Office (GPO). The full text of the Federal Register and the Code of Federal Regulations (CFR) are on GPO's website.
The Federal Reserve System.
The Federal Reserve is also the primary supervisor and regulator of bank holding companies and financial holding companies.
The income statement, balance sheet, and statement of cash flows are required financial statements.
What is the primary purpose of US regulatory agencies?
The purpose of regulatory agencies is to protect the public's health, safety, property, and overall interests. In most cases, this involves setting, enforcing, and publicizing licensing requirements, quality standards, and conduct rules across an industry.
Financial reporting standards provide principles for preparing financial reports and determine the types and amounts of information that must be provided to users of financial statements, including investors and creditors, so that they may make informed decisions.
The bank must report its financial condition, the results of its operations, and risk exposure. 2 The most common regulatory reports are the Consolidated Reports of Condition and Income (call reports) and other Federal Financial Institutions Examination Council (FFIEC) financial reports.
Two federal laws cover your personal financial privacy: The Fair Credit Reporting Act (PDF) and the Gramm-Leach-Bliley Act.
It doesn't take an exorbitant salary, either. Americans say they'd need to earn about $94,000 a year on average to feel financially independent. That's about $20,000 more than the median household income of $74,580.
The disadvantages of finance law include increased costs from regulations, decreased efficiency due to soft law, and a decrease in business profits due to compliance. This can result in a heavy financial burden for businesses.
The goal of regulation is to prevent and investigate fraud, keep markets efficient and transparent, and make sure customers and clients are treated fairly and honestly.
The Federal Reserve System is the central bank of the United States.
Failure to meet regulations can result in fines, orders to cease doing certain things, or, in some cases, even criminal penalties. Economists distinguish between two types of regulation: economic and social.
Bank regulation—two distinct types
There are two broad classes of regulation that affect banks: safety and soundness regulation and consumer protection regulation.
What do banking regulations prohibit?
Federal law set a ceiling on interest rates for savings accounts and generally prohibited interest payments on checking and other demand deposit accounts. Federal law also prohibited banks from offering money market accounts.
Laws are passed by both branches of Congress and signed by the President. Laws establish requirements or prohibitions. Regulations are published by executive branch agencies to clarify their interpretation of a law and how a law will be implemented. Regulations also state requirements or prohibitions.
The Statutes at Large is the permanent collection of all laws, both public and private, enacted during each session of Congress.
federal laws or regulations (for example: tax, Social Security, broadcasting, civil rights) interstate and international commerce, including airline and railroad regulation. securities and commodities regulation, including takeover of publicly held corporations.
Typically considered the most important of the financial statements, an income statement shows how much money a company made and spent over a specific period of time.
References
- https://www.federalreserve.gov/supervisionreg/topics/reporting.htm
- https://online.mason.wm.edu/blog/four-types-of-financial-statements
- https://montague.law/blog/understanding-finance-law-an-overview-of-regulations-and-policies/
- https://en.wikipedia.org/wiki/Bank_regulation_in_the_United_States
- https://www.law.cornell.edu/wex/banking
- https://resourcehub.bakermckenzie.com/en/resources/global-financial-services-regulatory-guide/north-america/united-states-of-america/topics/who-regulates-banking-and-financial-services-in-your-jurisdiction
- https://www.occ.treas.gov/topics/consumers-and-communities/consumer-protection/privacy/index-privacy.html
- https://www.occ.gov/publications-and-resources/publications/comptrollers-handbook/files/review-regulatory-reports/pub-ch-regulatory-reporting.pdf
- https://www.phe.gov/s3/law/Pages/default.aspx
- https://www.schwab.com/learn/story/3-financial-statements-to-measure-companys-strength
- https://libguides.lehman.edu/c.php?g=973987&p=7040995
- https://www.cnbc.com/2024/01/23/how-much-money-americans-need-to-earn-to-be-financially-independent.html
- https://www.ftc.gov/news-events/topics/protecting-consumer-privacy-security/financial-privacy
- https://www.investopedia.com/articles/economics/09/financial-regulatory-body.asp
- https://en.wikipedia.org/wiki/Financial_law
- https://www.senate.gov/legislative/HowTo/how_to_frandcfr.htm
- https://www.econlib.org/library/Enc/Regulation.html
- https://www.federalreserve.gov/aboutthefed/structure-federal-reserve-system.htm
- https://www.unit21.ai/fraud-aml-dictionary/regulatory-agencies
- https://www.congress.gov/public-laws/118th-congress
- https://www.cfainstitute.org/en/membership/professional-development/refresher-readings/financial-reporting-standards
- https://www.federalreserve.gov/supervisionreg.htm
- https://www.idnow.io/glossary/bank-regulation/
- https://www.minneapolisfed.org/article/2004/banking-regulation-the-focus-returns-to-the-consumer
