| regulation | Government enforcement of rules that prescribe permissible and nonpermissible activities for businesses and consumers.
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| deregulation | The lifting or liberalization of government rules that restrict what private businesses can do to serve their customers.
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| Federal Reserve System | The central bank of the United States, created by Congress to issue currency and coin, regulate the banking system, protect the value of the dollar, and promote maximum employment.
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| Comptroller of the Currency | Federal regulatory agency that charters national banks in the United States.
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| Federal Deposit Insurance Corporation (FDIC) | Federal agency established in 1934 to insure the deposits of commercial banks and later expanded in 1989 to insure the deposits of savings associations as well.
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| state banking commissions | Government boards that charter and supervise banks headquartered in a given state.
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| Glass-Steagall Act | The National Bank Act of 1933 that created the federal deposit insurance system and separated commercial from investment banking.
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| Financial Services Modernization (Gramm-Leach-Bliley) Act | A 1999 law of the U.S. government permitting the formation of financial holding companies that bring banks, insurance companies, and securities firms together in the same organization and allow customers to protect their financial privacy.
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| financial holding companies (FHCs) | Corporations permitted under the terms of the Gramm-Leach-Bliley Act to acquire and control banks, insurance companies, security underwriters, and other financial firms, all under the sane corporate umbrella.
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| Basel I | Agreement An agreement among the central banks of leading industrialized nations of Western Europe, Canada, the United States, and Japan, formally approved in 1988, that imposed common capital requirements upon all their banks in order to control bank risk exposure.
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| Basel II | Agreement Revisions to the Basel I Agreement allowing each bank in leading industrialized countries to determine its own risk exposure and required level of capital based, in part, on stress testing its asset portfolio.
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| National Credit Union Administration (NCUA) | Federal regulatory agency that oversees the activities of federally chartered credit unions.
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| Depository Institutions Deregulation and Monetary Control Act (DIDMCA) | Law passed in 1980 by the U.S. Congress to deregulate interest rate ceilings on deposits and grant new services to nonbank thrift institutions as well as to impose common reserve requirements on all depository institutions.
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| Office of Thrift Supervision | Federal agency that charters and supervises savings associations.
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| Garn-St Germain Depository Institutions Act | A law passed by the U.S. Congress in 1982 to further deregulate the depository institutions sector and to give federal deposit insurance agencies additional tools to deal with failing institutions.
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| Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) | Federal law passed in 1989 to bail out the U.S. savings and loan industry, strengthen the federal deposit insurance program, and liquidate the assets of failed thrift institutions.
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| FDIC Improvement Act (FDICIA) | Passed by the U.S. Congress in 1991, this federal law provided additional capital and borrowing authority for the Federal Deposit Insurance Corporation (FDIC) and permitted regulatory authorities to restrict the activities of and even close undercapitalized banks.
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| Securities and Exchange Commission (SEC) | Regulatory body of the federal government charged with monitoring the behavior of security brokers, dealers, and investment institutions.
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