The FDIC recently issued a Request for Information (RFI) seeking comment on approaches it uses, or is considering using, to analyze the effects of its regulatory actions. Comments must be received by January 28, 2020.
The RFI is part of FDIC’s ongoing effort to strengthen the quality of its regulatory cost-benefit analyses, and comments received on the RFI will assist the FDIC in this respect. According to the RFI, the FDIC has had a longstanding commitment to improving the quality of its regulations and policies, to minimizing regulatory burdens on the public and the banking industry, and generally to ensuring that its regulations and policies achieve legislative goals efficiently and effectively. The RFI describes a conceptual template for organizing the issues that typically arise in analyzing the effects of banking regulations, and doing so in a manner consistent with general principles for regulatory analysis.
According to the RFI, the FDIC is considering including the following in its rulemaking actions: (i) a statement of the need for the proposed action; (ii) the identification of a baseline against which the effects of the action are compared; (iii) the identification of alternative regulatory approaches; and (iv) an evaluation of the benefits and costs from all major stakeholder perspectives, that includes qualitative discussion, and quantitative analysis where relevant and practicable, of the proposed action and the main alternatives identified by the analysis. Moreover, the RFI states that the analysis should be transparent about its assumptions and significant uncertainties. The FDIC believes that an objective and transparent analysis of the effects of regulatory actions and alternatives supports both good policy decisions and the meaningful involvement and trust of the public in the rulemaking process.