What is one of the primary roles of a bank regulator?

One of the primary roles of a bank regulator is to enforce banking laws and protect deposits. This is crucial because regulators help maintain the stability and integrity of the financial system. They oversee banks to ensure that they adhere to the laws and regulations established to protect consumers and the broader economy. By enforcing banking laws, regulators help prevent fraud, financial crises, and irresponsible banking practices, thereby ensuring that public confidence in the banking system is upheld.

Additionally, protecting deposits means ensuring that individuals' savings are safeguarded, which often involves setting up insurance systems like the Federal Deposit Insurance Corporation (FDIC) in the United States, which protects depositors' funds in case of bank failures. This role is vital to the overall health of the banking sector and helps create a trustworthy environment where individuals feel secure in managing their financial resources.