Regulatory Bodies of the American Financial System

Running head: BANKING
Banking
Name:
Institution:
Date:

BANKING
Q1) Regulatory Authorities
What are the Regulatory Bodies of the American Financial System. the regulatory bodies
from the top of the shareholders box include,
 The federal/central bank of America
 Bankers Association

The Regulatory Bodies of the American Financial System supervise all the organizations and
institutions that make up the financial system. We can differentiate 4 organizations with their
respective societies. First, there are Credit Institutions, made up of multiple banks,
development banks, limited purpose financial companies (SOFOLES). Later, there are
organizations and auxiliary credit activities, composed of general deposit warehouses,
financial leasing companies, financial factoring companies, credit unions, savings and loan
companies (SAPs), exchange houses. (Allman, 2006).
(Mishkin, n.d.).
Q2) For Box 1
That is why there are several regulatory bodies that operate jointly in the regulation and
supervision of the organizations that make up the American Financial System, such as the
Bank of America, which is the central bank of the American State; the National Banking and
Securities Commission whose purpose is to supervise and regulate, within the scope of its
competence, the financial entities; the National Insurance and Bonding Commission whose
function is the inspection and surveillance of mutual insurance institutions and societies
(Brennan & Barnes-Murphy, 2013).

BANKING
Q3) For Box 2- Example of an activity
Box 2 equals to a non-state bank. The activities conducted are the same as all the other banks.
They include deposit taking activities, issuing of credit , lending and even brokerage
activities.
Branch is understood as any secondary establishment endowed with permanent representation
and a certain management autonomy through which the activities of the parent company are
fully or partially developed.
Q4) For boxes 3 and 4, provide an example of operating subsidiaries of a national bank.
There are different examples of operating subsidiaries of a national bank. Examples include;
trust banks, credit card banks, the federal savings associations, national banks and the federal
branches.
Other include; credit unions , the federal Deposit insurance corporation, the federal reserve
board of America are the main subsidiaries (Brennan & Barnes-Murphy, 2013).
The responsibility of the branch is not independent of that of the main establishment, the
creditors of the branch being able to go against the parent company.
Q5) For box 5, provide an example of a financial subsidiary of a national bank.
A subsidiary example is commercial bank of America with subsidiaries in mortgages and
share brokerage.