Answered: Explain the four different programs of…

Explain the four different programs of bank regulation the U.S. uses to maintain normal operation of the U.S. banking system

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter3: International Financial Markets

Section: Chapter Questions

Problem 5QA

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Concept explainers

Currency Market

The currency market, also known as the foreign exchange market, consists of currencies worldwide. This market determines the rate of all currencies based on the buying and selling of forex. It is an over-the-counter market. It is the largest and most liquid market based on trade volume.

Question

. Explain the four different programs of bank regulation the U.S. uses to maintain normal operation of the U.S. banking system

Expert Solution

Introduction-

United States banking regulations are highly fragmented. Most developed countries have only one bank regulator while in the U.S., banking is regulated at both the federal and state level.

U.S. banking regulation addresses various issues for maintaining normal operations in banking system. This includes fraud prevention, anti-money laundering, privacy, disclosure, anti-terrorism, and the promotion of lending to lower-income populations.

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