Chapter 15: 15 (page 379)
In government programs of bank supervision, what is being supervised?
Short Answer
During bank supervision, the governmental regulator monitors banks' balance sheets and make sure that the loans are not too risky.
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Chapter 15: 15 (page 379)
In government programs of bank supervision, what is being supervised?
During bank supervision, the governmental regulator monitors banks' balance sheets and make sure that the loans are not too risky.
The process of supervising a bank to keep a check on its financial performance and operations is known as bank supervision. The purpose of supervising banks is to ensure that they're following rules and regulations and operating safely. It's generally conducted by governmental controllers to help bank failures.
During bank supervision, the governmental controller observers banks' balance wastes and make sure that the loans aren't too parlous. Controllers principally ensure that the net worth of a bank is positive. In this process, the Office of the comptroller of the Currency supervises about 800 loans and savings institutions. The observers also supervise foreign banks that are functional in the United States through their branches. The U.S. Department of the Treasury has a special platoon of banks observers working as Comptroller of the currency who conduct on-point reviews of the .
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