“To require certain supervisory agencies to assess their technological capabilities, and for other purposes.”
No CRS summary available for this bill.
This section states congressional findings on deficiencies in banking regulators' access to real-time information and supervisory technologies, vulnerabilities from outdated systems (e.g., inadequate data analysis, cybersecurity, and detection of illegal activities), and the need to leverage technologies—including to address risks from financial firms' expanding use of artificial intelligence—to ensure effective oversight.
This section requires each covered agency—defined as the Board of Governors of the Federal Reserve System, Bureau of Consumer Financial Protection, Federal Deposit Insurance Corporation, Department of the Treasury (including the Office of the Comptroller of the Currency and Financial Crimes Enforcement Network), Federal Housing Finance Agency, and National Credit Union Administration—to complete, not later than 180 days after enactment, (1) an assessment of how existing technologies (i.e., core IT infrastructure, supervisory tools, market risk monitoring, and data handling) challenge real-time supervision of regulated entities; and (2) an assessment of procurement rules and protocols, including opportunities to streamline them within agency authority. It further requires the covered agencies to jointly submit to the House Committee on Financial Services and Senate Committee on Banking, Housing, and Urban Affairs, not later than 18 months after completing the assessments and every five years thereafter, a report summarizing for each agency: (1) hardware and software used in supervision; (2) procurement practices and streamlining opportunities; (3) workforce engaged in technology development, recruitment, retention, and contractor reliance; (4) processes and impediments to obtaining supervisory information; (5) market and technology trends and risks; (6) interagency information sharing and impediments; (7) estimated costs for supervised entities to modify systems for data sharing; and (8) plans for technology upgrades, including timelines, costs, impediments, hiring, interagency aspects, adaptation challenges, transition costs, and cost reductions.