or controlling interest in insurance companies, manufacturing companies, real estate companies, securities firms, or any other non-banking company. As a result, distinct regulatory systems developed in the United States for regulating banks, on the one hand, and securities firms on the other. Too big to fail and moral hazard Among the reasons for maintaining close regulation of banking institutions is the aforementioned concern over the global repercussions that could result from a bank's failure; the idea that these bulge bracket banks are "too big to fail". The objective of federal agencies is to avoid situations in which the government must decide whether to support a struggling bank or to let it fail. The issue, as many argue, is that providing aid to crippled banks creates a situation of moral hazard. The general premise is that while the government may have prevented a financial catastrophe for the time being, they have reinforced confidence for high risk taking and provided an invisible safety net. This can lead to a vicious cycle, wherein banks take risks, fail, receive a bailout, and then continue to take risks once again. By country Australia: Australian Prudential Regulation Authority China: China Banking Regulatory Commission Germany: MaRisk Switzerland: List of Swiss financial market legislation and Swiss Financial Market Supervisory Authority United Kingdom: United Kingdom banking law United States: Bank regulation in the United States See also Anti-money laundering Bank condition Bank failure Bank run Business process management Credit rating agency Data loss prevention Financial regulation Financial repression Know your customer Late-2000s financial crisis List of bank stress tests Monetary policy Money market Moral hazard Too big to fail RAROC Standards: ISO 4217 – Standard for unique 3 digit currency code ISO 6166 – Standard for unique identifier for securities ISIN ISO 8109 – Standard for format and unique identifiers for Eurobonds ISO 9362 – Standard format of Business Identifier Codes to identify Banks also known as BIC ISO 10962 – Standard for financial instrument classification codes ISO/IEC 15944 – Standard that provides a consolidated vocabulary of eBusiness concepts ISO 19092-1 – Standard for biometric security in financial applications References External links Middle East Banking & Finance News – ArabianBusiness.com Banking & Finance News – BankingInsuranceSecurities.com Reserve requirements Reserve Requirements – Fedpoints – Federal Reserve Bank of New York Capital requirements Basel II: Revised international capital framework FDIC: Risk – Based Assessment System Agenda from ISO ISO/TR 17944 Financial