It writes and enforces rules for financial institutions, examines both bank and non-bank financial institutions, monitors and reports on markets, as well as collects and tracks consumer complaints.
It provides policy directions in the areas of money, banking and credit and exists to supervise operations of banks and exercises regulatory powers over non-bank financial institutions.
Alternative financial services are typically provided by non-bank financial institutions, although person-to-person lending and crowd funding also play a role.
Banks are less profitable than telcos, health care companies, and non-bank financial institutions, but more profitable than companies which produce consumer staples, resources or energy.
Most credit cards are issued by or through local banks or credit unions, but some non-bank financial institutions also offer cards directly to the public.
However, in the absence of effective financial regulations, non-bank financial institutions can actually exacerbate the fragility of the financial system.