TAILIEUCHUNG - Supervision and Regulation

As the central bank of the United States, the Federal Reserve performs services for foreign central banks and for international organizations such as the International Monetary Fund and the International Bank for Re- construction and Development. The Reserve Banks provide several types of services to these organizations, including maintaining non-interest- bearing deposit accounts (in . dollars), securities safekeeping accounts, and accounts for safekeeping gold. Some foreign off icial institutions direct a portion of their daily receipts and payments in . dollars through their funds accounts at the Federal Reserve. If an account contains ex- cess funds, the foreign off icial institution. | 5 Supervision and Regulation The Federal Reserve has supervisory and regulatory authority over a wide range of financial institutions and activities. It works with other federal and state supervisory authorities to ensure the safety and soundness of financial institutions stability in the financial markets and fair and equitable treatment of consumers in their financial transactions. As the . central bank the Federal Reserve also has extensive and well-established relationships with the central banks and financial supervisors of other countries which enables it to coordinate its actions with those of other countries when managing international financial crises and supervising institutions with a substantial international presence. The Federal Reserve has responsibility for supervising and regulating the following segments of the banking industry to ensure safe and sound banking practices and compliance with banking laws bank holding companies including diversified financial holding companies formed under the Gramm-Leach-Bliley Act of 1999 and foreign banks with . operations state-chartered banks that are members of the Federal Reserve System state member banks foreign branches of member banks Edge and agreement corporations through which . banking organizations may conduct international banking activities . state-licensed branches agencies and representative offices of foreign banks nonbanking activities of foreign banks Although the terms bank supervision and bank regulation are often used interchangeably they actuallyrefer todistinct supervision involvesthemonitoring inspecting enOexeminingefBenking organizations to assess their condition and their compliance with relevant laws and regulations. When a banking organization within the Federal Reserve s supervisory jurisdiction is found to be noncompliant or to have other problems theFederaSReletvr nm use its supervtsorBahthorrty to take formal or informal action to have .

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