Regulatory Protection
Banks are normally subject to prudential regulation which has the purpose of reducing the risk of failure of the bank. It may also have the purpose of reducing the extent of depositor losses in the event of bank failure.
Bank deposits may also be insured by a deposit insurance scheme, if applicable.
Read more about this topic: Deposit Account
Famous quotes containing the word protection:
“Take away from the courts, if it could be taken away, the power to issue injunctions in labor disputes, and it would create a privileged class among the laborers and save the lawless among their number from a most needful remedy available to all men for the protection of their business interests against unlawful invasion.... The secondary boycott is an instrument of tyranny, and ought not to be made legitimate.”
—William Howard Taft (1857–1930)