Each year, we make more than 1,000 recommendations to help the federal government save money, address issues on our High Risk List and significantly improve government operations.
This letter to the Federal Deposit Insurance Corporation outlines 2 open recommendations that it should prioritize. For example, FDIC should work with other federal banking regulators to communicate appropriate uses of alternative data sources—such as rent or utility payments—in credit underwriting.
FDIC did not implement the recommendation we identified as a priority last year.
We regularly update priority recommendations here.
What GAO Found
In June 2022, GAO identified one priority recommendation for the Federal Deposit Insurance Corporation (FDIC) to coordinate with the other banking regulators and communicate to banks engaged in third-party relationships with fintech lenders on the appropriate use of alternative data in the underwriting process. FDIC has not implemented this priority recommendation.
As of June 2023, GAO identified one additional priority recommendation for FDIC to develop a coordination mechanism with other federal financial regulators for identifying and addressing blockchain risks.
FDIC's continued attention to these issues could improve its ability to more effectively oversee risks to consumers and the safety and soundness of the U.S. banking system.
Why GAO Did This Study
Priority open recommendations are the GAO recommendations that warrant priority attention from heads of key departments or agencies because their implementation could save large amounts of money; improve congressional and/or executive branch decision-making on major issues; eliminate mismanagement, fraud, and abuse; or ensure that programs comply with laws and funds are legally spent, among other benefits. Since 2015, GAO has sent letters to selected agencies to highlight the importance of implementing such recommendations.
For more information, contact Daniel Garcia-Diaz at (202) 512-8678 or GarciaDiazD@gao.gov.