Financial System

The Federal Reserve System is composed of 12 Federal Reserve districts, each district being served by a Federal Reserve Bank. Member banks own the stock issued by the Federal Reserve Banks. The Board of Governors in Washington, D.C. directs and coordinates the activities of the Federal Reserve Banks. The Federal Open Market Committee (FMOC) conducts open-market operations by buying and selling U.S. government securities. The Fed’s three major advisory committees are: Federal Advisory Council, Consumer Advisory Council, and the Thrift Institutions Advisory Council.

Supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system to protect the credit rights of consumers.

There are various categories of banking; these include retail banking, directly dealing with small businesses and persons. Commercial and Corporate banking which offers services to medium and large businesses (Koch & MacDonald 2010). Private banking, deals with individuals, offering them one on one service. The last category is investment banking. These help clients to raise capital and often invest in financial markets. Most global banking institutions provide all these services combined. With all these institutions in existence within the same localities and offering similar services, there is a need to regulate the industry so as to protect the consumer and provide fair working environment for all banks (Du & Girma, 2011).

15. The prudential regulator of banks in Canada is responsible for: A) ensuring the stability of interest rates. B) ensuring that banks treat customers ethically and fairly. C) ensuring that banks are solvent and adopt appropriate risk management. D) ensuring that banks report suspected money laundering activities. E) none of the above.

Firstly, the Dodd–Frank Act pushes forward the reformation of America's financial regulatory system. Several new regulatory authorities are set up to enhance the government supervision and administration of the industry. The Financial Stability Oversight Council is established to identify material risks to financial stability, with the support from Office of Financial Research. Moreover, Fed is entitled to exercise additional superintendence beyond banks.

• Ensure high levels of employment by conducting the national monetary policy through influencing the economy’s money and credit conditions in pursuit of stable prices and full

Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money.

Is a requirement that banks maintains price stability, full employment, and economic wealth to all the people living in Australia. The achievement of these laws might be sometimes subjective because of the market’s volatility, but the bank tries to seek for their inflation target to keep consumers price with a two to three percent of inflation. Allocating the inflation conserves the value of the money and for a long run creates an expansion over the economy.

Servicing as financial advisors, banks help customers manage their money by recommending different opportunities and serving as a securities intermediary.

The Fed plays vital roles in our economy that often goes unnoticed by the most people in the public. Monitoring and ensuring smooth movement and transaction of money is one of the key roles that the Fed plays in the economy. They ensure that money is available in the local banks and the A.T.M. even during the time of crisis. The Fed also ensures a healthy economy and price stability through the implementation of the monetary policies to financial institutions and also supervising and regulating their activities to protect the public.

With this title two new government departments are created The Financial stability Oversight Council and the Office of Financial Research. The authority of the Board of Governors of the Federal Reserve System is it expanded also to allow them to supervise nonbank financial companies and certain bank holding companies that could affect the health of the country’s economy.

• Governance and oversight: Assessing business model and strategy changes and reinforcing the importance of sound corporate governance appropriate for the size and complexity of the individual bank. A specific focus will be on determining the adequacy of strategic, capital, and succession planning. Examiners will assess whether the plan is appropriate in light of the risks in new products or services. If applicable, examiners will assess the bank’s merger and acquisition processes and procedures.

1(a) Financial System is a complex yet connected system that consist of financial intermediaries, financial institutions and financial assets.

Financial systems and financial regulators are entities setup by the government of a country to ensure the availability and flow of financial resources in a fair and lawful manner without exploitation or monopolization of the resource by individuals or organizations. The task of ensuring the availability of finance and its transference is taken up by the financial systems of a country while the task of monitoring and regulating is taken up by the financial regulator.

A bank’s capacity of handling and intermediating large financial flows depend crucially on its capital base and quality of risk management. To enhance this capacity in banks in Bangladesh, BB has introduced mandatory Basel II based capital requirements for banks from 2010 after a year in trial run; steps have also been taken to develop and strengthen risk assessment capacities including forward looking stress testing in the banks as well as in BB supervision departments. To sum up, BB’s routine half yearly monetary policy formulation exercises aimed at maintaining