Banking Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The primary federal regulator of state banks that are members of the Federal Reserve is the Federal Reserve itself. State-chartered banks can choose to become members of the Federal Reserve System. Once they opt for membership, they come under the supervision and regulatory purview of the Federal Reserve. This dual regulatory structure—where state banks are regulated both by state banking authorities and by federal entities—allows for a comprehensive oversight mechanism that ensures these banks adhere to both federal standards and local regulations.

The Federal Reserve conducts regular examinations and provides regulatory guidance to help maintain the stability and safety of the banking system. Its role as a primary federal regulator is a critical function since it not only serves member banks but also contributes to the overall monetary policy and financial stability of the country.

The other entities listed, such as the Resolution Trust Corporation, primarily handle asset resolution and did not directly serve as primary regulators for banks. The Office of the Comptroller of the Currency focuses on national banks, while State Banking Authorities oversee state-chartered banks that are not members of the Federal Reserve System. Therefore, the Federal Reserve is uniquely positioned to serve as the main regulator for state banks that have opted into its membership.