Only one statement is 100% correct. Which one? → A. State agencies charter and regulate national banks. B. The Federal Deposit Insurance Corporation (FDIC) is the oldest U.S. commercial bank reg C. The Federal Reserve System (FRS) has regulatory power over nationally chartered banks holding companies and state banks that opt in to the FRS. < D. The Office of the Comptroller of the Currency (OCC) charters and regulates state banks.

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Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.