financial supervision

Financial supervision refers to the regulatory oversight of financial institutions, like banks and investment firms, to ensure they operate safely and fairly. This involves monitoring their activities to protect consumers, maintain market stability, and prevent fraud or financial crises. Supervisory authorities establish rules and conduct regular inspections to make sure these institutions follow laws and manage risks effectively. Overall, financial supervision aims to foster trust in the financial system, ensuring that individuals and businesses can save, invest, and borrow with confidence.