There are many government regulators of financial institutions.  Each bank is regulated by multiple agencies, plus they have their own external auditors! National Banks have as many as four different regulators in addition to their own external, and maybe internal, auditors.Why is there so much overlap? Is this a waste of resources?

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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.