Governments Role In Banking" & Economic Growth And Business Cycles" – Coursework Example
Government Role in Banking al Affiliation Government Role in Banking Government role in banking Regulation of banks in theUS is quite divided as compared to other countries around the globe. On a broad view, it is regulated at the federal level and the state level. The US government plays a significant role in ensuring that there are privacy and confidentiality in the banking sector. Moreover, it helps in the prevention of cases of bank frauds and instils an anti-laundering money campaign. Moreover, the government helps in ensuring that the banks get the required security necessary in the running of their day to day operations (The Federal Reserve and Bank Supervision and Regulation, n.d.). Additionally, the US government has played a significant role in ensuring that there is a distribution of income to the low-income earners. Regulations have been in place in the banking sector for long and have guided how the banks operate.
Supervision of banks in the US
The Division of Banking Supervision and Regulation is the responsible for the supervision of the US banking sectors and ensures that they are carried out in the most appropriate manner. The division develops and implements quality and sound regulations that help in the running of the organization. Moreover, the division controls the monetary policies by monitoring current development projects of the banking sector.
Measurement of economic growth
Economic growth of any country is measured using the GDP, Income per capita and the Gross National product of the country. All these tools are effective in coming up with an economic growth of a country. Measurement of the economic growth uses the national income accounting of the country to ensure that the growth indices are attained. Getting the net income per capita may be difficult due to the various incomes earned by individuals of those countries. However, the GDP may be a vital tool in ensuring that the economic growth is measured with ease.
In 2011, trough, a phase in the business cycle was experienced in the economy, attributed to the world’s economic crisis. During this time, the economy was at its low. However, an expansion came in as a result of the investors’ injections of capital into the country and other internal factors (Reference for Business, n.d.). When the economy grew, it reached its peak, and the country witnessed a growth in the industries and infrastructure development as compared to the previous year. However, at the end of 2011, the economy began shrinking in what is referred to as a recession.
FRB: Speech, Meyer -- The Federal Reserve and Bank Supervision and Regulation -- April 16, 1998. (n.d.). Retrieved May 7, 2015, from http://www.federalreserve.gov/boarddocs/speeches/1998/199804162.htm
Reference for Business. (n.d.). Retrieved May 7, 2015, from http://www.referenceforbusiness.com/encyclopedia/Bre-Cap/Business-Cycles.html