The Federal Structure for Examining Financial Institutions Can Be Improved
GGD-81-21
Published: Apr 24, 1981. Publicly Released: Apr 24, 1981.
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Highlights
Congress took a giant step to improve coordination among federal regulators by establishing the Federal Financial Institutions Examination Council. GAO reviewed the field office structure of the bank regulatory agencies to determine if there were inherent problems with each agency having its own national network of examiners.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Financial Institutions Examination Council | The Federal Financial Institutions Examination Council should establish a task force to determine the feasibility of consolidating the examination forces of the federal regulatory agencies. |
Closed – Not Implemented
The Council planned no action on the recommendation because of numerous practical and institutional obstacles. This question was also considered as part of a study completed by a task force headed by Vice President Bush. The task force has issued a report calling for the restructuring of federal bank regulatory agencies.
|
| Office of the Comptroller of the Currency | The Board of Directors of the Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System, and the Comptroller of the Currency should establish procedures for making periodic evaluations of their internal organizational structure and take actions to realign their field structure whenever opportunities exist to improve the dispersal of their examiner forces. |
Closed – Not Implemented
The Office of the Comptroller of the Currency said that it did not establish such procedures, but said its annual operating plans always include a review of the internal organizational structure.
|
| Federal Deposit Insurance Corporation | The Board of Directors of the Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System, and the Comptroller of the Currency should establish procedures for making periodic evaluations of their internal organizational structure and take actions to realign their field structure whenever opportunities exist to improve the dispersal of their examiner forces. |
Closed – Not Implemented
FDIC indicated that it had a procedure to realign its field structure. Therefore, it has not acted on this recommendation.
|
| Board of Governors | The Board of Directors of the Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System, and the Comptroller of the Currency should establish procedures for making periodic evaluations of their internal organizational structure and take actions to realign their field structure whenever opportunities exist to improve the dispersal of their examiner forces. |
Closed – Not Implemented
The Federal Reserve System indicated that it had under consideration the feasibility and potential benefits from opening offices in other locations. Therefore, it has not acted on this recommendation.
|
| Federal Financial Institutions Examination Council | The Federal Financial Institutions Examination Council should prepare a plan, including proposed legislation, whereby bank examinations would be conducted, to the extent feasible, by the closest federal regulatory agency. |
Closed – Not Implemented
The Council planned no action on the recommendation because of numerous practical and institutional obstacles.
|
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Topics
Bank examinationBanking regulationFederal credit unionsFederal reserve banksFinancial managementNational banksPrioritizingRegulatory agenciesCredit unionsFinancial institutions