Which term refers to the process of overseeing bank functions?

The term that refers to the process of overseeing bank functions is bank regulation. This involves the implementation and enforcement of laws and guidelines designed to maintain the stability and integrity of the financial system. Regulators monitor banks to ensure they are operating safely, adhering to legal standards, and protecting consumer interests.

Regulation plays a critical role in preventing banking crises and ensuring that banks have sufficient capital and liquidity to meet their obligations. This oversight can include setting reserve requirements, conducting regular examinations, and enforcing compliance with various regulatory frameworks.

In contrast, bank auditing pertains specifically to evaluating a bank's financial records and internal processes rather than the broader scope of ensuring compliance with regulations. Financial forecasting relates to predicting future financial trends, and asset management focuses on investing and managing clients' assets for growth or income generation.