Safety and Soundness

Objective of financial industry regulation. Federal and state supervision of banking is designed to provide a financially stable industry that meets the public's credit and other financial needs, as well as to prevent bank Runs or Panics by providing depositors with assurances that their funds will be protected from loss. Federal deposit insurance, for example, protects depositors' accounts from loss in event of financial institution failure. Supervision is done through periodic site visits and examination of a bank's records, and also through filing of Call Report data with an institution's Primary Regulator.