According to a Government Accountability Office (GAO) report released this week, although regulators have made progress in implementing some key reforms required by the Dodd-Frank Act, others remain incomplete, and the effectiveness of some implemented reforms remains to be seen. The report examines the (1) overall status of U.S. financial regulatory reforms arising from the Act, (2) challenges affecting the implementation of these reforms, and (3) areas that pose continued risk.
While the report does not specifically address the efforts of the National Credit Union Administration (NCUA), it does touch on the progress of the Financial Stability Oversight Council (FSOC), of which NCUA is a member. FSOC was established to identify systemic threats, and as noted in the report, has taken steps to carry out its responsibilities. “Regulators have taken actions to implement some key reforms intended to reduce systemic risk. For example, FSOC developed—and is currently implementing—a process and criteria to determine whether certain non-bank financial institutions should be designated for supervision. But, to date, no such designations have been made,” according to the report.
Overall, GAO identified 236 provisions of the Dodd-Frank Act that require regulators to issue rulemakings across nine key areas. As of December 2012, of these 236 provisions, regulators had: (1) issued final rules for 48%; (2) proposed rules for 29%; (3) and not begun the rulemaking process for 23%.