Financial Regulation:

Modernization of the Financial Services Regulatory System

T-GGD-95-121: Published: Mar 15, 1995. Publicly Released: Mar 15, 1995.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO discussed the modernization of the financial services regulatory system. GAO noted that: (1) although the banking industry appears to have recovered from its recent crisis, it is premature to assume that fundamental concerns about risk management and regulatory supervision have been resolved; (2) while the regulatory system has adapted to the financial industry's movements on an ad hoc basis, the regulatory structure has overlaps, anomalies, and gaps; (3) new safeguards could be implemented to prevent undue risks to various interests in the financial system; (4) financial services holding companies should be subject to comprehensive regulation on a functional and consolidated basis to prevent potential conflicts of interest and protect insured deposits; (5) capital standards for insured banks and financial services holding companies should adequately reflect all risks and regulators should conduct periodic assessments of their risk management systems; (6) regulators should have clear rulemaking and supervisory authority and be required to cooperate and coordinate with each other; and (7) mechanisms should exist to prevent excessive concentration of economic power and to ensure free entry into financial services markets.

Sep 22, 2020

Sep 4, 2020

Jul 21, 2020

Jul 6, 2020

Apr 30, 2020

  • finance icon, source: Comstock

    Priority Open Recommendations:

    Department of the Treasury
    GAO-20-549PR: Published: Apr 23, 2020. Publicly Released: Apr 30, 2020.

Apr 27, 2020

Apr 21, 2020

Apr 20, 2020

Looking for more? Browse all our products here