Which of the following is not a purpose of bank regulation?
A)Guarantee minimal profitability of the banking system
B)Provide monetary stability
C)Ensure safety and soundness of banks
D)Provide competitive financial system
E)Protect consumers from abuses of banks

Question

Quizplus · Accepted Answer

Guaranteeing minimal profitability of the banking system is not a purpose of bank regulation. The primary purpose of bank regulation is to ensure the safety and soundness of the banking system, provide monetary stability, and protect consumers from abuses of banks. While bank profitability may be a consideration in some regulatory actions, it is not the primary purpose of bank regulation.

Which of the Following Is Not a Purpose of Bank