I 
118TH CONGRESS 
2D SESSION 
H. R. 7437 
To require certain supervisory agencies to assess their technological 
vulnerabilities, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 23, 2024 
Mrs. HOUCHIN (for herself, Mr. FOSTER, and Mr. HILL) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To require certain supervisory agencies to assess their 
technological vulnerabilities, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fostering the Use of 
Technology to Uphold Regulatory Effectiveness in Super-
vision Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(1) Banking regulators continue to examine and 
monitor depository institutions without access to 
real-time information. 
(2) Bureaucracy and risk surrounding tech-
nology procurement presents a difficult challenge for 
updating supervisory technology. 
(3) To ensure that prudential supervision is ef-
fective and sustainable in the digital age, agencies 
must leverage new technologies to allow for the fi-
nancial monitoring necessary to preserve a safe and 
sound banking system. 
(4) New technology tools are also necessary in 
order for agencies to effectively fulfill mandates 
other than prudential supervision, including their 
mandates to assure consumer protection and mon-
itor Bank Secrecy Act compliance. 
(5) Agencies’ reliance on outdated technology 
creates vulnerabilities for the financial system, caus-
ing— 
(A) difficulties in collecting, compiling, and 
analyzing relevant information about risks and 
noncompliance at supervised firms; 
(B) reliance on information that is inac-
curate, incomplete, or not timely; reliance on 
limited and outdated tools for data analysis; 
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(C) difficulties in using data to identify 
risk trends; 
(D) difficulty in producing accurate and 
timely reports; 
(E) inadequacy of cybersecurity safe-
guards; and 
(F) failure to detect illegal activities. 
(6) The rapid expansion of financial firms’ use 
of artificial intelligence is generating opportunities 
to improve the financial system, making it essential 
that agencies be equipped with the technology and 
skills needed to analyze these opportunities and po-
tential risks. 
(7) While agencies assess their supervisory ca-
pabilities on an ongoing basis, it is imperative that 
there be a unified goal to enhancing supervisory 
technologies that ensures effective and sustainable 
oversight in the digital age. 
SEC. 3. TECHNOLOGICAL VULNERABILITIES AND PRO-
CUREMENT PRACTICES ASSESSMENT. 
(a) IN GENERAL.— 
(1) TECHNOLOGICAL VULNERABILITIES ASSESS-
MENT.—Each covered agency shall, not later than 
180 days after the date of the enactment of this sec-
tion, assess how its existing technological systems 
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prevent an agency from conducting real-time super-
visory assessments over entities which the covered 
agency has supervisory authority, including the ef-
fects stemming from the agency’s— 
(A) core information technology infrastruc-
ture; 
(B) technology used to supervise entities, 
including supervisory technology tools; and 
(C) technology for monitoring general mar-
ket risks using reported data and external data. 
(2) PROCUREMENT PRACTICES ASSESSMENT.— 
Each covered agency shall, not later than 180 days 
after the date of the enactment of this section, as-
sess the procurement rules and protocols adhered to 
by such covered agency when such covered agency 
acquires or develops new technological systems and 
identify any challenges created by such procurement 
rules and protocols, including the impact such rules 
or protocols have on the ability of the covered agen-
cy to test new technological systems. 
(b) REPORT.—Not later than 180 days after the com-
pletion of the assessments set forth in this section, and 
every 5 years thereafter, the covered agencies shall coordi-
nate and submit to the Committee on Financial Services 
of the House of Representatives and the Committee on 
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(D) any concerns about access to needed 
resources; 
(E) intended efforts for hiring and training 
individuals as part of any technological up-
grades; 
(F) any aspects of any plan that should be 
addressed on an interagency basis; and 
(G) any anticipated challenges and solu-
tions associated with entities supervised by the 
agency adapting to new reporting requirements, 
including the needs and plans for supervised en-
tities adaptation to new reporting requirements, 
including estimates of transition costs and po-
tential cost reductions over time. 
(c) COVERED AGENCY DEFINED.—The term ‘‘cov-
ered agency’’ means the Federal Reserve System, Federal 
Deposit Insurance Corporation, Office of the Comptroller 
of the Currency, Consumer Financial Protection Bureau 
and the National Credit Union Administration. 
Æ 
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