Which organization supervises and regulates bank functions to maintain a stable banking industry?

The Federal Reserve System, often referred to simply as the Fed, is the central banking system of the United States and plays a critical role in the supervision and regulation of bank functions. Its primary objectives include promoting a stable financial system, managing inflation, and ensuring full employment. The Federal Reserve conducts regular examinations of banks to monitor their safety and soundness, implement monetary policy, and serve as a lender of last resort during times of financial crisis.

The Federal Reserve also establishes regulations that govern banking practices and has the authority to implement changes to these regulations as necessary to maintain stability in the banking industry. This oversight helps to prevent bank failures, minimizes risks posed by systemic issues, and fosters consumer confidence in the banking system.

Other organizations listed serve different roles: for instance, the Securities and Exchange Commission primarily regulates the securities industry, while the Consumer Financial Protection Bureau focuses on protecting consumers in financial services. The Office of Thrift Supervision was once responsible for regulating savings and loan institutions but has since been abolished, and its functions were transferred to other federal and state agencies. Thus, the Federal Reserve System is uniquely positioned to provide the comprehensive supervision necessary to maintain a stable banking industry.