Discussion Paper

Just Released: What Do Banking Supervisors Do?

Abstract: In most developed economies, banking is among the most regulated and supervised sectors. While 'regulation' and 'supervision' are often used interchangeably, these two activities are distinct. Banking supervision is a complement to regulation, but its scope is much broader than simply ensuring that an institution is in compliance with regulation. Despite the importance of supervision, information about it is often limited, both because of the heavy reliance upon banks' confidential information and because many supervisory activities and actions are themselves confidential. In a recently released Staff Report, we shed more light on the topic by describing the Federal Reserve's supervisory approach for large, complex financial institutions and how supervision of such firms is conducted on a day-to-day basis at the Federal Reserve Bank of New York as part of this broader supervisory program.

Keywords: Supervision; Large and Complex Financial Institutions; Banking;

JEL Classification: G2;

Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Liberty Street Economics

Publication Date: 2015-05-28

Number: 20150528