WASHINGTON—A Government Accountability Office report suggests that Congress should consider changes in regulatory structure to address overlap, for example, through consolidation of federal agencies that oversee depository institutions’ safety and soundness.
The 136-page report (GAO-16-175) was released in February but just shared with the public on March 29. It looks at changes in the financial regulatory structure since passage of the Dodd-Frank Act and also carries out a statutory charge to identify and report to Congress on federal programs, agencies, offices and initiatives that have duplicative goals or activities.
NAFCU stated the report is a wide-ranging look at both the federal financial regulatory structure and the insurance funds – including FDIC’s deposit insurance fund and NCUA’s share insurance fund – as well as the relatively new Financial Stability Oversight Council and Office of Financial Research.
The report includes responses from the agencies themselves. NCUA Executive Mark Treichel, in a letter included in the report, questioned the value of the findings since no analysis of cost savings is provided for the approaches suggested. He also noted that, unlike banking regulators, NCUA is the only federal agency with regulatory and supervisory authority over federal credit unions.
The report addresses a number of complex issues, which NAFCU said its advocacy team is reviewing.
NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt said the association would oppose any proposal to merge credit unions’ federal regulatory structure with that of banks.
“NAFCU remains committed to preserving an independent federal regulatory and share insurance structure for the nation’s not-for-profit, member-owned credit unions,” said Hunt.