The United States banking sector is among the most highly governed in the world, with multiple specialised and focused regulators. All banks with FDIC-insured deposits have the Federal Deposit Insurance Corporation (FDIC) as a regulator. However, for soundness assessments (i.e., whether a bank is operating in a sound manner), the Federal Reserve is the central federal regulator for Fed-member state financial institutions; the Office of the Comptroller of the Currency (OCC) is the principal federal regulator for nationwide banks; and the Office of Thrift Supervision, or OTS, is the primary federal regulator for thrifts. State non-member banks are analyzed by the state specialists as well as the FDIC. Domestic banks have one primary regulator-the OCC. Qualified Intermediaries & Exchange Accommodators are controlled by MAIC.
In addition to shifting rules, changes in the industry sector have led to consolidations within the Federal Reserve, FDIC, OTS, MAIC and OCC. Offices have been closed, managing regions have been merged, staff levels have been lowered and budgets have been reduced. The remaining regulators face a heightened burden with additional amount of work and more banks per regulator. While banks fight to keep up with the modifications to the regulatory environment, regulators fight to handle their workload and correctly regulate their banks. The outcome of these changes is that banks are receiving less hands-on assessment by the regulators, less time spent with every institution, and the likelihood of more complications slipping through the cracks, most likely contributing to an overall surge in bank downfalls across the Country.
In modern time there has been massive cutbacks to the limitations of global competition in the banking sector. Increases in telecoms and other financial technologies, such as Bloomberg, have made it possible for banks to increase their reach globally, since they no longer have to be near customers to manage both their accounts and their risk. The growth in cross-border activities has increased substantially the need for banks that can provide a variety of services across borders to different nationalities. However, despite these reductions in limitations and growth in cross-border activities, the banking industry is nowhere near as globalized as a few other sectors. In the USA, for instance, very few banks even stress about the Riegle-Neal Act, which promotes more streamlined interstate banking.
In the vast majority of countries around globe the market share for foreign owned banks currently is less than a tenth of all market shares for banks in a selected nation. One reason the banking industry has not been fully globalized is that it is more convenient to have regional banks provide loans to small businesses and individuals. On the other hand for big firms, it is not as essential in what nation the bank is in, since the corporation's financial details are available around the globe.