bank supervision

Bank supervision refers to the oversight and regulation of banks by government authorities to ensure they operate safely and soundly. This process involves monitoring banks' financial health, ensuring compliance with laws, and protecting depositors' interests. Supervisors assess risks, review financial statements, and conduct examinations to prevent issues like fraud or insolvency. Effective bank supervision promotes stability in the financial system, fosters consumer confidence, and helps prevent crises that can affect the economy. Essentially, it’s about ensuring that banks manage money responsibly and can fulfill their obligations to customers and the wider economy.