Congress establishes rules that govern the supervision and regulation of banks that operate within the united states. The main purpose is to promote the safety and soundness of banks which in turn enhances the public confidence in the banking and financial system. It is the Fed together with other bank supervisory agencies that has the responsibility of making sure these rules are followed. In its supervisory role the Fed monitors banks and bank holdings companies. Bank holding companies are firms that own or control one or more banks and the U.S. operations of foreign banks. Federal examiners look at such items such as financial records and the potential risk of the banks investments along with seeing if the banks are following applicable