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Bill

S 5335

A bill to amend the Federal Financial Institutions Examination Council Act of 1978 to provide for fair audits and inspections for examinations.

119th Congress Introduced by Kevin Cramer and 2 co-sponsors

Aims to amend FFIEC Act to ensure audits and bank examinations are fair, transparent, and consistently applied with stronger oversight, remedies, and accountability.

Introduced in Senate
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Bill Summary · S 5335

Bill Overview

  • Bill: S 5335
  • Session: 119
  • Jurisdiction: United States

  • Title / Purpose: A bill to amend the Federal Financial Institutions Examination Council Act of 1978 to provide for fair audits and inspections for examinations.

  • Introduced: 2026-08-06

  • Action history: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

  • Sponsors: Co-sponsors Jerry Moran and Bill Hagerty

What the Bill Aims to Do

  • The bill seeks to amend the Federal Financial Institutions Examination Council Act of 1978.
  • The central objective is to ensure that audits and inspections conducted as part of financial institution examinations are fair.

Key Provisions (Provisions to Expect Based on Title)

Note: As the text of the bill’s specific sections is not provided here, the following reflects the likely areas such amendments typically address, based on the bill’s stated aim to ensure fair audits and inspections:

  • Fairness Standards for Examinations: Establish criteria and guidelines to ensure audits and on-site inspections of financial institutions are conducted in a non-discriminatory, transparent, and consistent manner.
  • Accountability and Oversight: Strengthen oversight mechanisms for examiners and the process by which examinations are carried out, potentially including public or independent review provisions.
  • Procedural Safeguards: Implement procedural protections for institutions undergoing examinations, such as clearer notice requirements, standardized examination procedures, and timeframes.
  • Reporting and Transparency: Require reporting on examination practices, findings, and corrective actions to promote transparency and reduce potential inconsistencies or biases.
  • Remedies and Recourse: Create or clarify avenues for institutions to challenge unfair audits or to appeal examination conclusions, possibly including review processes or inspector general oversight.
  • Interagency Coordination: Clarify roles among members of the Federal Financial Institutions Examination Council (FFIEC) or related agencies to ensure harmonized application of fairness standards.

Who Would Be Affected

  • Financial Institutions Regulated by FFIEC Agencies: Banks, savings associations, and other federally regulated institutions subject to periodic examinations.
  • Regulatory Examiners and Agencies: Personnel and agencies involved in conducting, supervising, and overseeing bank examinations and audits.
  • FFIEC Member Agencies: The federal agencies that participate in FFIEC would implement and enforce the updated fairness standards.
  • Industry Stakeholders: Potentially impacted groups advocating for consumer protection, transparency, and fair examination practices.

Timing and Procedural Aspects

  • Introduced and Read: The bill was introduced and read twice on 2026-08-06.
  • Committee Action: Referred to the Senate Committee on Banking, Housing, and Urban Affairs for consideration.
  • Next Steps: If advanced, the committee may hold hearings, mark up the bill with amendments, and report it to the Senate floor. Subsequent steps would depend on broader legislative timing and priorities.

Potential Impacts and Considerations

  • Compliance Burden: Institutions and examiners may need to adjust processes to align with new fairness standards, potentially increasing documentation and consistency requirements.
  • Fairness and Transparency: Aimed at reducing perceived or real biases in audits and inspections, improving trust in the examination system.
  • Enforcement and Remedies: Clarified recourse could enhance accountability for examiners and agencies.
  • Implementation Details: The precise standards, definitions (e.g., what constitutes “fair” audits), and enforcement mechanisms will determine practical impact.

If the full text becomes available, a more detailed section-by-section breakdown (including definitional clarifications, timelines for implementation, and any funding provisions) can be provided.

Compiled from official sources — confirm details with the bill’s official record.

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