Why are banks regulated and protected by government?

Banks are regulated and protected by the government to ensure financial stability, maintain public confidence, and prevent systemic risks that could lead to economic crises. Regulations help safeguard depositors' funds, ensure fair practices, and promote transparency in banking operations. Additionally, government oversight helps prevent fraud, money laundering, and other illegal activities, thereby fostering a safe and sound banking environment. Ultimately, these measures protect both consumers and the overall economy.