Sponsors (3)
Official title: Amend the Federal Financial Institutions Examination Council Act of 1978 to provide for fair audits and inspections for examinations.
Introduced August 6, 2026 by Jerry Moran · Last progress August 6, 2026
The bill speeds up and clarifies supervisory responses and creates a fast appeals path for supervised financial institutions—reducing regulatory uncertainty and some compliance risk—at the cost of added fees, reduced transparency, new administrative expenses, and potential strain on supervisory capacity that could increase oversight gaps and systemic risk.
Banks, credit unions, and other supervised financial institutions will get faster, time‑bound examinations and written responses, reducing regulatory uncertainty and lowering compliance costs for institutions and potentially lowering costs or improving services for their customers.
Creates an independent review Board that gives financial institutions an expedited, de novo appeals path to resolve disputed material supervisory determinations, improving fairness and predictability of enforcement decisions.
Allows institutions to obtain binding written advice limited to their facts and rely on it in good faith, lowering transaction‑specific legal and regulatory risk for affected deals or activities.
Faster statutory deadlines for examinations and responses could strain supervisory agency resources, forcing shallower reviews or higher costs and thereby increasing the risk of oversight gaps that could raise systemic risk for the financial system and consumers.
Charging fees for written advice shifts costs to requesting institutions and may disproportionately raise compliance expenses for smaller banks and community institutions, squeezing small firms and reducing their competitiveness.
Treating written advice as confidential supervisory information and limiting its precedential effect reduces public transparency about supervisory interpretations and could lead to inconsistent treatment across institutions.
Based on analysis of 2 sections of legislative text.
Imposes deadlines and procedural requirements for federal regulators' examinations and establishes a framework for written supervisory advice requests.
Sets firm timing and procedural rules for federal regulators’ on-site exams of banks and other supervised financial institutions, including deadlines for completing exams, conducting exit interviews, delivering final reports, and providing source information on material supervisory findings. Requires agencies to adopt written procedures allowing covered institutions to request written agency advice about certain supervisory actions and interpretations (a prudential private letter ruling process), though the provided text for that process is incomplete in the excerpt.