Fostering the Use of Technology to Uphold Regulatory Effectiveness in Supervision Act

This bill requires several federal financial supervisory agencies to conduct comprehensive assessments of their technological capabilities and procurement practices. The legislation aims to address the challenges posed by outdated technology, which can hinder real-time supervisory assessments, create vulnerabilities, and impede the analysis of new technologies like artificial intelligence. Agencies must evaluate their core IT infrastructure, technologies used for supervision, data collection and security systems, and identify opportunities to streamline technology procurement rules and protocols.

Following these assessments, the covered agencies, which include the Federal Reserve, FDIC, OCC, and others, are mandated to coordinate and submit a joint report to Congress. This report, due 18 months after the initial assessments and every five years thereafter, must detail their hardware and software, procurement processes, technology workforce engagement, data collection methods, and market technology trends. It also requires a description of future technology upgrade plans, including timelines, costs, and anticipated challenges, ensuring a unified goal of enhancing supervisory technologies for effective and sustainable oversight.