Financial supervision refers to the oversight and regulation of financial institutions and markets to ensure their stability and integrity. This process is typically carried out by government agencies or regulatory bodies, such as the Securities and Exchange Commission or the Federal Reserve. Their main goal is to protect consumers, maintain fair practices, and prevent financial crises. Through financial supervision, regulators monitor the activities of banks, investment firms, and other financial entities. They assess risks, enforce compliance with laws, and promote transparency. This helps to build trust in the financial system and ensures that it operates efficiently and safely for all participants.