While I can describe the differences between oversight, supervision, and regulation by drawing sharp lines, in reality, the lines are not that sharp. Regulation is prescriptive, often quantitative, and generally not very flexible. It may prohibit an activity or prevent it. It may prevent it in a limited way, for example, in proportion to capital. It involves the formulation and issuance of specific rules and regulations, under governing law, for the conduct of business.
Supervision is more qualitative.
It depends upon the judgment of an examiner or inspector. It involves the safety and soundness of specific institutions, in the light of the general continuous review of the activities of the entire industry to ensure prudent operation and compliance with law and regulation. Oversight is a form of general supervision. It typically is used to refer to the monitoring of a corporate group, as opposed to a specific firm. Oversight is considered much less intrusive than supervision and might be viewed as surveillance, normally conducted at a distance, while supervision involves close, first-hand, observation and analysis.