Why It Matters
Three U.S. banking agencies took an active part in developing international banking standards from 2010 through 2025, according to a new report by the U.S. Government Accountability Office (GAO).
Along with other standard-setting bodies, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency helped develop 22 standards and at least 120 guidelines and informational publications, based on GAO's review of standard-setting documentation and agency staff.
The Big Picture
Financial regulators around the world, including those in the United States, work together to develop international financial standards. Members generally are expected but not legally required to implement standards domestically, while implementation of guidelines and informational publications is encouraged but not expected.
The U.S. banking agencies may implement standards through rulemaking that reflects domestic priorities, and they typically take part through working groups or task forces. They also do joint work with, or provide technical assistance to, certain bodies in which they are not members. They participate as members in international standard-setting bodies such as the Basel Committee on Banking Supervision.
Implementation has run mainly through domestic rulemaking. Basel Committee implementation-monitoring reports state that, as of May, the agencies had proposed 27 rules to implement the Basel standards, 18 of which had been finalized. The agencies also adopted some guidelines and informational publications. Agency staff told GAO that "domestic policy objectives and internal deliberations primarily drove agency implementation actions."
The report states that some members of Congress have raised questions about the transparency of international standard setting. Some of them have stated that the banking agencies have implemented domestic regulations that closely reflect international standards "developed with limited input from U.S. stakeholders."
GAO reviewed agency policies, procedures, and annual reports, standard-setting body publications, and academic and policy literature. It also interviewed agency officials and 18 stakeholders: eight academics, three private sector lawyers, and seven advocacy organizations.
The Bottom Line
The report describes oversight of the banking agencies' role as a mix of internal and external checks. Internally, senior officials review staff work, and agency leaders approve policy positions and represent their agencies in key meetings. Externally, the agencies face congressional hearings and reporting, public consultations by standard-setting bodies, and disclosures in annual reports.
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