Banking regulations are rules and laws that govern how banks operate to ensure the safety and stability of the financial system. These regulations help protect consumers' deposits, prevent fraud, and maintain public confidence in the banking sector. They are enforced by government agencies, such as the Federal Reserve in the United States, which monitor banks' activities and financial health. These regulations cover various aspects, including capital requirements, lending practices, and consumer protection. For example, banks must hold a certain amount of capital to absorb losses, ensuring they can continue to operate during economic downturns. Overall, banking regulations aim to create a secure environment for both banks and their customers.