Priority Open Recommendations: Federal Deposit Insurance Corporation
Fast Facts
Each year, we make more than 1,000 recommendations to help the federal government save money, address issues on our High Risk List, and significantly improve government operations.
This letter to the Federal Deposit Insurance Corporation outlines 2 open recommendations that it should prioritize. For example, FDIC should coordinate with other federal financial regulators to identify and address blockchain risks.
FDIC did not implement these same recommendations we identified as a priority last year. We regularly update priority recommendations here.
Highlights
What GAO Found
In August 2023, GAO identified two priority recommendations for the Federal Deposit Insurance Corporation (FDIC). These recommendations call for the following:
- Developing a coordination mechanism with other federal financial regulators to identify and address blockchain risks.
- Collaborating with other financial regulators to communicate with banks that have third-party relationships with financial technology lenders about using alternative data in underwriting.
As of May 2024, FDIC had not implemented these priority recommendations. We are not adding any new priority recommendations this year.
Fully implementing these open recommendations could significantly improve FDIC's efforts to oversee more effectively the safety and soundness of the U.S. banking system and risks to consumers.
Why GAO Did This Study
Priority open recommendations are the GAO recommendations that warrant priority attention from heads of key departments or agencies because their implementation could save large amounts of money; improve congressional and/or executive branch decision-making on major issues; eliminate mismanagement, fraud, and abuse; or ensure that programs comply with laws and funds are legally spent, among other benefits. Since 2015, GAO has sent letters to selected agencies to highlight the importance of implementing such recommendations.
For more information, contact Daniel Garcia-Diaz at (202) 512-8678 or GarciaDiazD@gao.gov.