Transparency in Banking Act
The Transparency in Banking Act would require the United States’ major banking regulators to publicly report on the Basel Committee on Bank Supervision (BCBS) and its activities each year. Specifically, the Federal Reserve Board, the Federal Reserve Bank of New York, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (in consultation with the Secretary of the Treasury) must jointly submit an annual report to Congress and post it on the Fed’s website. The report must cover goals for Basel Committee meetings, who will attend, problems to address, options likely to be considered, the nature of proposed standards and the authority to implement them, and the activities of Basel subcommittees. If there are significant changes to planned activities, agencies must notify Congress within 30 days, sharing meeting results, relevant economic context, meeting minutes or summaries, proposals being discussed, and the positions of U.S. representatives. Additionally, the Chairs of the Fed’s Supervisory Division must include these details in their annual testimony to Congress. The aim is to increase transparency and congressional oversight of how Basel standards are discussed and potentially adopted in the United States.
Key Points
- 1Annual report obligation: By January 31 each year, the Federal Reserve Board, Federal Reserve Bank of New York, OCC, and FDIC (with Treasury input) must jointly report to Congress and publish the Basel Committee information on the Fed’s website.
- 2Contents of the annual report: Goals for BCBS meetings; attendees from each U.S. agency; problems to be addressed; likely options; what standards are being considered and their impact on the U.S.; the legal authority to implement proposed standards; activities or proposed activities of Basel subcommittees.
- 3Change notifications: Within 30 days of any significant change in planned BCBS activities, the agencies must inform Congress with meeting results, general economic context, a minutes-like summary including proposed changes and votes or positions, descriptions of proposals being discussed, and the position of each U.S. representative.
- 4Public transparency: The report requires public posting on the Fed’s website.
- 5Congressional oversight: The Fed’s Chair and Deputy/ Vice Chair for Supervision must incorporate the annual BCBS transparency details into their regular annual testimony before the Senate Banking Committee and the House Financial Services Committee.
- 6Scope: Applies to the four major U.S. banking regulators (the Federal Reserve Board, the Federal Reserve Bank of New York, the OCC, and the FDIC) and involves the Secretary of the Treasury in the process.