Business & Finance
Banking
Economics

Why the bank need to be supervised?

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July 26, 2015 8:46PM

In the US and in almost any nation, banks of every kind must be supervised internally by an auditing department and externally by banking regulation organizations. In the US, governmental and semi-public organizations such as the US Federal Reserve System, supervises and makes certain monetary policy changes they deem are necessary for the proper and lawful operation of the banking industry. The outside supervision is necessary in order to prevent bank failures and/or disruptions in the financial markets.