Question

How different are the U.S. regulations of commercial banks compared to other countries? Select a country, research, and post your thoughts in this topic.

Answer 1

Federal Reserve regulates commercial banks in the U.S while Reserve Bank of India regulates commercial banks in India.

RBI and Fed have quite a lot of differences in their priorities.

Preamble of RBI is "to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage; to have a modern monetary policy framework to meet the challenge of an increasingly complex economy, to maintain price stability while keeping in mind the objective of growth." This broadly explains the objectives of RBI.

Fed Reserve's statutory objectives for monetary policy is maximum employment, stable prices, and moderate long-term interest rates.