Federal Financial Institutions Examination Council Has Made Limited Progress Toward Accomplishing Its Mission
Highlights
GAO assessed the progress of the Federal Financial Institutions Examination Council in accomplishing its congressional mandates. The Council was established to: (1) prescribe uniform federal examination principles, standards, and report forms for examinations of financial institutions; (2) recommend uniformity in other supervisory matters; (3) develop uniform financial institution reporting systems; and (4) develop a comprehensive examiner education program. The Council is composed of the Comptroller of the Currency, the Chairman of the Board of the Federal Deposit Insurance Corporation, a member of the Board of Governors of the Federal Reserve System, the Chairman of the Federal Home Loan Bank Board, and the Chairman of the Board of the National Credit Union Administration.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| There are a number of proposals being considered to reorganize the federal structure for regulating financial institutions. In making its judgments on these proposals, Congress should consider that a coordinating mechanism such as the Council has not been effective in dealing with major policy differences in the examination process. |
Closed – Implemented
|
The issues relating to uniformity among the five member agencies in their examination and supervision functions remains a concern. FHLBB has recently taken steps toward making its examination process more similar to that used for banks. |