Final answer:
The Office of the Comptroller of the Currency (OCC), which falls under the U.S. Department of the Treasury, plays a vital role in overseeing and regulating national banks, foreign banks with U.S. branches, and savings and loan institutions to ensure financial stability.
Step-by-step explanation:
The Office of the Comptroller of the Currency (OCC) is an integral part of the U.S. Department of the Treasury. It plays a crucial role in bank supervision by conducting on-site reviews and overseeing the balance sheets of national banks and foreign banks with branches in the United States. The OCC also monitors and regulates savings and loan institutions, ensuring they have positive net worth and are not engaging in excessively risky behavior.
The OCC’s staff of bank examiners review and regulate approximately 1,500 of the largest national banks and about 800 savings and loan institutions. They carefully inspect these financial entities to maintain stability and compliance within the banking system. This regulatory approach helps to safeguard the banking industry and protects against financial instability.