Bank Regulation

Bank regulation is the regular analysis and audit of banking activities to protect the interest of the depositors through the proper utilization and implementation of laws and rules. The main focus is to stablize the financial system against systematic risks brought on by the individual bank.

The primary aim of bank regulation and supervision is to patronize those activities through which protection of depositor's interest and strength of the whole banking system is increased.

Objectives of Bank Regulation

1. To develop proper and efficient banking system.
2. To stablize and maintain the banking system.
3. To ensure highest safety of depositors.
4.  To ensure the investment in socially preferential sectors.
5. To minimize the problems in banking service.
6. To ensure the proper and efficient competition in banking system.
7. To avoid possible obstacle in banking system.
8. To maintain credit system and flow under control.
9. To maintain the balance in the assets, liabilities in the bank.
10. To ensure public confidence on quality services offered by banks.