The purpose of this part is to help the Bank supervise licensed deposit takers. You can think of licensed deposit takers as banks or other places where people keep their money. The Bank wants to make sure these places are safe and follow the rules.

The Bank does this by checking a few things, such as whether a licensed deposit taker has good policies in place to follow the rules. The Bank also checks if a licensed deposit taker is actually following the rules.

The Bank can also check the information a licensed deposit taker gives them to make sure it is correct. They can look at how a licensed deposit taker is run to see if there are any risks. If a licensed deposit taker is not following the rules, the Bank can check if they are following a plan to fix the problem, as outlined in subpart 4.

The Bank can also look at how well a licensed deposit taker is doing financially. They can review one or many licensed deposit takers to see how they are doing in certain areas, like how they are governed.

The Bank can do other things that are related to supervising licensed deposit takers. This includes anything that helps them make sure licensed deposit takers are safe and follow the rules.