What Is a Primary Regulator?
A primary regulator is a state or federal regulatory agency tasked with being the main supervising entity of a financial institution. In most cases, this is the same agency that issued the initial charter allowing the financial institution to operate.
Banks and other financial institutions must file quarterly call reports that indicate their income and overall condition to their primary regulatory authority.
Key Takeaways
- A primary regulator is the main supervising body of a bank or other financial institution.
- Primary regulators are state or federal regulatory agencies and are usually the same agency that provided the charter that allowed the financial institution to operate.
- The Office of the Comptroller of the Currency (OCC) is the biggest primary regulator in the country and is responsible for the greatest number of financial institutions.
- The OCC's responsibilities include approving charters for new banks, taking actions against banks that don't follow laws andregulations, removing officers and directors, giving out cease and desist orders, and issuing civil money penalties.
Understanding a Primary Regulator
For national banks, the primary regulator is the Office of the Comptroller of the Currency (OCC). State-chartered banks and bank holding companies, meanwhile, initially report to the Federal Reserve Board (FRB), while state banks answer to the banking departments of their respective states.
Office of the Comptroller of the Currency(OCC)
The OCC charters, regulates, and supervises all national banks and federal savings associations, as well as federal branches and agencies of foreign banks. The OCC is an independent bureau of the U.S. Department of the Treasury.
Credit Unions
The National Credit Union Administration (NCUA)supervises and insures federal credit unions and all state-chartered credit unions.
State-Chartered Banks
Two federal agencies share responsibility for state banks.The Federal Deposit Insurance Corporation (FDIC) insures state-chartered banks that are not members of the Federal Reserve System (FRS), as well as deposits in banks and savings associations.
For state-chartered banks that are members of the FRS, meanwhile, the FRB is the primary regulator.Additionally, state-chartered banks aresupervised by state banking regulators.
Special Considerations
The OCC is by far the biggest primary regulator and is responsible for the largest number of institutions.The OCC notes that it has the power toexamine the national banks and federal thrifts.It can approve or deny applications for new charters, branches, capital, or other changes in corporate or banking structures.It can also take supervisory actions against national banks and federal thrifts that do not comply with laws and regulations or that otherwise engage in unsound practices.
The OCC can remove officers and directors, negotiate agreements to change banking practices, and issue cease and desist orders as well as civil money penalties. Moreover, it can issue rules and regulations, legal interpretations, and corporate decisions governing investments, lending, and other practices.
The Office of Thrift Supervision (OTS) wasmerged with the OCC, the FDIC, the Federal Reserve Board of Governors, and the Consumer Financial Protection Bureau (CFPB) in July 2011 to create one regulatory agency. Previously, the OCC regulatedall federally chartered and state-chartered savings banks and savings and loan associations (S&Ls).
Links to the various primary regulators can be found here.
FAQs
What Is a Primary Regulator? A primary regulator is a state or federal regulatory agency tasked with being the main supervising entity of a financial institution. In most cases, this is the same agency that issued the initial charter allowing the financial institution to operate.
What is the primary job of a regulator? ›
What is the Primary Purpose of Regulatory Agencies? Financial regulatory agencies are government agencies or independent organizations responsible for enforcing laws and regulations, overseeing market activities, and protecting consumers and investors.
How do you determine a bank's primary regulator? ›
National banks and federal savings associations are regulated by the Office of the Comptroller of the Currency (OCC). To find out if your bank is regulated by the OCC, visit the Who Regulates My Bank? page on this website.
Who is the primary federal banking regulator? ›
The OCC charters, regulates, and supervises all national banks and federal savings associations as well as federal branches and agencies of foreign banks. The OCC is an independent bureau of the U.S. Department of the Treasury.
What is regulator and how does it work? ›
A voltage regulator is a system designed to automatically maintain a constant voltage. It may use a simple feed-forward design or may include negative feedback. It may use an electromechanical mechanism, or electronic components. Depending on the design, it may be used to regulate one or more AC or DC voltages.
What is the function of primary pressure regulator? ›
The reduction of the inlet pressure to a lower outlet pressure is the fundamental characteristics of pressure regulators. So, the main pressure regulator function is to match the flow of gas through the regulator to the demand for gas placed upon it, whilst maintaining a constant output pressure.
What is the main purpose of the regulator? ›
While the primary purpose of a power distribution voltage regulator is to provide regulated voltage that meets power quality criteria, voltage regulator electronic controls can also enable conservation voltage reduction, metering and integrated volt/var control (IVVC).
What is the main role of regulators? ›
Regulators are equipped with the task of overseeing, monitoring and enforcing of laws, rules and regulations. One of the Key features of a regulator is to ensure compliance by all parties involved so that fairness, transparency and stability is maintained.
What does a regulator person do? ›
A regulator is a person or organization appointed by a government to regulate an area of activity such as banking or industry. An independent regulator will be appointed to ensure fair competition.
What does a regulator do in banking? ›
The regulatory agencies primarily responsible for supervising the internal operations of commercial banks and administering the state and federal banking laws applicable to commercial banks in the United States include the Federal Reserve System, the Office of the Comptroller of the Currency (OCC), the FDIC and the ...
You can check our Financial Services Register (FS Register) to make sure a firm or individual is authorised. It will also tell you the activities the firm has permission for. Search for the firm by name, or by using its firm reference number (FRN).
What are the three bank regulators? ›
There are numerous agencies assigned to regulate and oversee financial institutions and financial markets in the United States, including the Federal Reserve Board (FRB), the Federal Deposit Insurance Corp. (FDIC), and the Securities and Exchange Commission (SEC).
What is the primary purpose of regulatory agencies? ›
A regulatory agency is an organization designed to manage some area of human activity through a set of rules and licenses. It's usually created to enforce standards of safety and quality across an industry. In other cases, it's created to protect consumers in industries that have low competition.
Who is the primary regulator over the mortgage banking industry? ›
Consumer Financial Protection Bureau.
Who is the top Fed banking regulator? ›
Federal Reserve Board - The Federal Reserve Board supervises state-chartered banks that are members of the Federal Reserve System.
What is primary vs secondary regulator? ›
The primary Nitrogen regulator is designed to decrease the gas cylinder's high pressure to a lower, usable pressure for wine dispensing or servicing a gas blender. Secondary gas regulators reduce pressure from a primary regulator or gas blender and then this lower pressure services each individual beer keg.
What is the difference between primary and secondary regulation? ›
Primary sources establish the law. They include cases, statutes, regulations, treaties, and constitutions. Relevant primary sources have the greatest influence on the outcome of any legal issue. Secondary sources explain the law but do not themselves establish binding law.
What are the 3 main types of regulators? ›
There are two types of Linear voltage regulators: Series and Shunt. There are three types of Switching voltage regulators: Step up, Step down, and Inverter voltage regulators.
What is the primary regulator of fluid intake? ›
The correct answer: The primary regulator of water intake is the mechanism of thirst. The thirst center is present in the hypothalamus of the brain which is responsible for generating the stimulus for initiating the impulse for drinking water.
