S.940 - Transparency in Banking Act (119th Congress)
Summary
The Transparency in Banking Act (S.940) aims to increase congressional oversight of the Basel Committee on Bank Supervision. It mandates specific federal entities (Federal Reserve, OCC, FDIC) to report annually to Congress on the Basel Committee's activities, goals, and potential impact on the United States. The Act also requires these entities to inform Congress of any significant changes in planned activities and includes a provision for testimony before relevant congressional committees.
Expected Effects
The Act will likely increase transparency regarding international banking standards and their potential implementation in the US. This could lead to more informed decision-making by Congress regarding financial regulations. It may also give the public a better understanding of the international forces shaping US banking policies.
Potential Benefits
- Increased transparency in international banking regulations.
- More informed congressional oversight of financial institutions.
- Potential for better-tailored financial regulations that suit the US economy.
- Greater public awareness of international banking standards.
- Improved accountability of US representatives in international banking forums.
Most Benefited Areas:
Potential Disadvantages
- Potential for increased bureaucracy and reporting burdens on federal agencies.
- Risk of politicizing technical banking standards.
- Possible delays in implementing necessary financial regulations due to increased scrutiny.
- Potential for conflicting priorities between domestic and international banking standards.
- The act does not address the underlying issues the Basel Committee is trying to solve.
Constitutional Alignment
The Act aligns with the US Constitution, particularly Article I, Section 8, which grants Congress the power to regulate commerce, including banking. The requirement for federal entities to report to Congress supports the principle of congressional oversight and accountability. The Act does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).