Why Are Banks Regulated?

Question 1

Why do banks are regulated

Answer 1

(prudential regulations)
- deal with banks’ safety and soundness to prtect depositors’ funds
- economic stability
- concerns social goals

Question 2

Banks are regulated to reduce the risk of large-scale failures that would adversely affect the level of economic activity

Answer 2

Domestic Markets

Question 3

Corporation chartered by a state to engage in international banking

Answer 3

Agreement Corporation

Question 4

A company that owns and/or controls one or kore U.S. banks that owns, or has controlling interest in, one or more banks

Answer 4

Bank Holding Company (BHC)

Question 5

A financial institution that is owned by stockholders,operates for a profit, and engages in various lending activities

Answer 5

Commercial Bank

Question 6

State-chartered savings asscociations located in Massachsetts, New Hampshire, Rhode Island and Vermont

Answer 6

Cooperative Bank

Question 7

Financial cooperative organization of individuals a common affiliation

Answer 7

Credit Union

Question 8

Entities primarily engaged in providing infrastructure for hosting or data processing services

Answer 8

Data Processing Servicer

Question 9

A branch that resides in the United States, and whose parent is also located in United States

Answer 9

Domestic Branch of Domestic Bank

Question 10

Domestic institurions that engage in banking activities usually in connection with the business of banking in United States

Answer 10

Domestic Entity Other

Question 11

An organizatio charted by the Federal Reserve to engage in international banking and financial operations.

Answer 11

Edge/Agreement Corporation

Question 12

Financial intermediary that makes loans to individuals or businesses.

Answer 12

Finance Company

Question 13

A finance entity engaged in a broad range of banking-related activities, created by Gramm-Leach-Bliley Act of 1999.

Answer 13

Finance Holding Company

Question 14

Refers to any U.S. operation of a banking organization headquartered outside the United States

Answer 14

Foreign Bank

Question 15

Can acquire or establish freestanding banks or bank holding companies in United states

Answer 15

Foreign Banking Organization (FBO)

Question 16

A foreign banking organization that is owned or controlled by a BHC

Answer 16

Foreign Banking Organization of a BHC

Question 17

A foreign banking organization that is also acts as a BHC and is thus supervised by the Board of Governors of the Federal Reserve

Answer 17

Foreign Banking Orhanization as a BHC

Question 18

A branch thag resides outside the United States but has a parent that is located in the US

Answer 18

Foreign Branch of a US Bank

Question 19

Foreign institutions that engage in banking activities usually in conenction with the business of banking in the countries where such foreign institutions are ofganized or operating.

Answer 19

Foreign Entity Other

Question 20

A limited service fianncial institution that raises funds by selling certificates call investment shares and by accepting deposits

Answer 20

Industrial Bank

Question 21

Provides compensation based on the happening of one or
more contingencies.

Answer 21

Insurance Company

Question 22

An insured branch accepts retail
deposits and must apply for federal deposit insurance.

Answer 22

Insured Branch of an FBO (Federal and State)

Question 23

Acts as underwriter or agent that serves as intermediary between issuer of securities and the investing public.

Answer 23

Investment Bank/Company

Question 24

A bank that is a member of the Federal Reserve System, including
all nationally chartered banks and any state-chartered or mutual savings banks that
apply for membership and are accepted.

Answer 24

Member Bank

Question 25

A financial institution that accepts deposits primarily from individuals and places a large portion of its funds into mortgage loans.

Answer 25

Mutual Savings Bank

Question 26

A commercial bank whose charter is approved by the OCC rather than by a state banking department.

Answer 26

National Bank

Question 27

This subset includes all commercial banks that are state-chartered and are NOT members of the Federal Reserve System.

Answer 27

Non-Member Banks

Question 28

Accepts and executes trusts but does not issue currency

Answer 28

Non-Depository Trust Company

Question 29

Those financial institutions, not specifically listed, with authority to accept deposits of funds.

Answer 29

Other Depository Institution

Question 30

Companies not specifically listed, but in which there is regulatory interest that are not authorized to accept deposits.

Answer 30

Other Non-Depository Institution

Question 31

A financial institution that accepts deposits primarily from individuals and channels its funds primarily into residential mortgage loans.

Answer 31

Savings and Loan Association

Question 32

Banking institution organized to encourage thrift by paying interest dividends on savings.

Answer 32

Savings Bank

Question 33

Entities primarily engaged in acting as agents (i.e., brokers) between buyers and sellers in buying or selling securities on a commission or transaction fee basis.

Answer 33

Securities Broker/Dealer

Question 34

This subset includes all commercial banks that are state-chartered and members of the Federal Reserve System.

Answer 34

State Member Banks

Question 35

An organization that primarily accepts savings account deposits and invests most of the proceeds in mortgages.

Answer 35

Thrifts

Question 36

An uninsured agency does not accept retail deposits and need not apply for federal deposit insurance.

Answer 36

Uninsured Agency of an FBO (Federal and State)

Question 37

An uninsured branch does not accept retail deposits and need not apply for federal deposit insurance.

Answer 37

Uninsured Branch of an FBO (Federal and State)

Question 38

U.S. branches and agencies of foreign banks are entities contained within and controlled by a foreign banking organization.

Answer 38

U.S. Branches and Agencies of FBOs

Question 39

occurs when bank failures are potentially contagious, and only then if the losses in one bank cascade into other banks or to other economies through-out the world.

Answer 39

Systemic Risk