Legislation that would require federal banking regulators to report to lawmakers on their cybersecurity efforts cleared the House late yesterday by voice vote.
The Cybersecurity and Financial System Resilience Act (H.R. 4458) would apply to the Federal Reserve, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, and the National Credit Union Administration.
The bill would require the agencies to submit annual reports to the House Financial Services Committee and the Senate Banking, Housing, and Urban Affairs Committee with "a detailed explanation of measures undertaken to strengthen cybersecurity with respect to the functions of the regulator, including the supervision and regulation of financial institutions and, where applicable, third-party service providers," the bill says.
"The bill we have before us will ensure the government regulators are taking seriously the systemic risk that cybersecurity attacks pose to the global economy," said Rep. Patrick McHenry (R-NC), the bill’s sponsor and ranking member of the House Financial Services Committee, which approved the bill in October (see Banking and Finance Law Daily, Oct. 31, 2019).
"For the first time, this legislation will require U.S. bank regulators—the Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp., and the National Credit Union Administration—to provide Congress with a detailed analysis of what they are doing to protect against cyber attacks, both internally and in the entities they oversee," Rep. McHenry said on the House floor.
The Congressional Budget Office estimated the bill’s implementation "would cost less than $500,000 annually and would increase gross direct spending by $1 million over the 2020-2029 period."
"However, the NCUA and OCC collect fees from financial institutions to offset operating costs. Because those fees are treated as reductions in direct spending, CBO estimates that the net effect on direct spending would be insignificant over the period," the office said in a report.
"Costs incurred by the Federal Reserve reduce remittances to the Treasury, which are recorded in the budget as revenues," the report added. "CBO estimates that enacting H.R. 4458 would decrease revenues by $1 million over the 2020-2029 period."
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