ELI5: Explain Like I'm 5

Bank regulation

Bank regulation is like having a grownup check to make sure that banks are doing what they should be doing. Banks hold people's money, so it's important to make sure that the banks are using that money correctly and taking care of it properly. That's why governments around the world have different rules and regulations in place for banks to make sure that their money is safe. For example, some government rules might require banks to hold a certain amount of money in reserve, so that if a customer needs to take out more money than the bank has on hand, the bank can still pay them back. Other regulations might require banks to keep records of where the money is at all times, so it's easier to keep track. The regulations also help to prevent things like fraud and money laundering. All in all, bank regulation helps to keep people's money safe.