H.R. 7437 — what changed

changed Bureaucracy and risk Risk surrounding technology procurement presents a difficult challenge may present challenges for updating supervisory technology.

changed New technology technological tools are also necessary in order for agencies to effectively fulfill mandates other than prudential supervision, including their mandates to assure consumer protection and monitor Bank Secrecy Act compliance.

changed reliance on information that is inaccurate, incomplete, or not timely; reliance on limited and outdated tools for data analysis;timely;

changed The rapid expansion of financial firms’ use of artificial intelligence is generating may generate opportunities to improve the financial system, system while also introducing a range of risks, making it essential that agencies be equipped with the technology and skills needed to analyze these opportunities and potential risks.

changed Technological vulnerabilities assessment— Each covered agency shall, not later than 180 days after the date of the enactment of this section, assess how its existing technological systems used by the covered agency prevent an the covered agency from conducting real-time supervisory assessments over of entities over which the covered agency has supervisory authority, including the effects stemming from the agency’s—from—

changed technology used to supervise entities, including supervisory technology technological tools; and

changed Procurement practices assessment— Each covered agency shall, not later than 180 days after the date of the enactment of this section, assess the procurement rules and protocols adhered to by such covered agency when such covered agency acquires or develops new technological systems and identify any challenges created by such procurement rules and protocols, including the impact such rules or protocols have on the ability of the covered agency to test new technological systems.section—

changed Report— Not later than 180 days 1 year after the completion of the assessments set forth in this section, required under subsection (a), and every 5 years thereafter, the covered agencies shall coordinate and jointly submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a report that includes the following with respect to each covered agency—

changed a general overview of hardware and software used for informational information gathering and advanced analytics during supervision activities, including products purchased from technology vendors and products developed by the covered agency or contractors;contractors of the covered agency;

changed any challenges resulting from such practices and protocols and relevant factors, if any, that have hindered the ability of impacted the covered agency agency’s ability to obtain new technology;

changed a general overview of the agency’s portion of workforce of the covered agency that is engaged primarily in technology development within the covered agency, including—

changed an overview of the ability of the covered agency to recruit and retain appropriate technology experts; andexperts;

changed a description of the degree to which the covered agency relies on outside contractors to design technology and perform technology-related tasks;employee self-reported workforce data; and

changed a description of the ways in which the covered agency shares information or system access with other covered agencies;

changed an evaluation of the level of ease or difficulty experienced by the covered agency agency, including any legal or regulatory challenges, when—

changed sharing data with other government agencies; andor

changed collecting data from entities supervised by the covered agency; andagency;

changed a description an evaluation of any plans the covered agency has with respect to how the covered agency will implement future upgrades cost for supervised entities to the technology used by the covered agency modify systems to supervise entities supervised by the share data with covered agency, including—agencies; and

changed Covered agency defined— The term In this section, the covered agency means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, the Bureau of Consumer Financial Protection Bureau Protection, and the National Credit Union Administration.