(2) FACTORS TO BE INCLUDED.—In conducting 
the study pursuant to paragraph (1), the Federal 
Deposit Insurance Corporation shall— 
(A) consider the overall effectiveness and 
accuracy of the methodology used by the Cor-
poration for establishing and maintaining re-
serves and estimating and accounting for losses 
at insured depository institutions, during the 
period described in such paragraph; 
(B) consider the appropriateness and reli-
ability of information and criteria used by the 
Corporation in determining— 
(i) whether an insured depository in-
stitution was in a troubled condition; and 
(ii) the amount of any loss anticipated 
at such institution; 
(C) analyze the actual historical loss expe-
rience over the period described in paragraph 
(1) and the causes of the exceptionally high 
rate of losses experienced by the Corporation in 
the final 3 years of that period; and 
(D) rate the efforts of the Corporation to 
reduce losses in such 3-year period to minimally 
acceptable levels and to historical levels.
(3) REPORT REQUIRED.—The Board of Direc-
tors of the Federal Deposit Insurance Corporation 
shall submit a report to the Congress before the end 
of the 1-year period beginning on the date of the en-
actment of this Act, containing the findings and con-
clusions of the Corporation with respect to the study 
required under paragraph (1), together with such 
recommendations for legislative or administrative ac-
tion as the Board of Directors may determine to be 
appropriate. Before submitting the report to Con-
gress, the Board of Directors shall provide a draft 
of the report to the Comptroller General for com-
ment. 
(e) BASEL II STUDY.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Comptroller 
General shall report to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of 
Representatives on the potential impact on the fi-
nancial system of the United States of the imple-
mentation of the new Basel Capital Accord (Basel 
II) and the proposed revisions to current reserve re-
quirement regulations for non-Basel II banks.
(2) FACTORS TO BE INCLUDED.—The report 
required under paragraph (1) shall address the fol-
lowing: 
(A) The potential impact of Basel II on 
capital requirements in the United States, in-
cluding— 
(i) whether there would be a reduction 
in capital requirements; 
(ii) whether Basel II could hinder en-
forcement of prompt corrective action laws 
and regulations; and 
(iii) the potential implications any 
changes in capital requirements may have 
on the safety and soundness of the finan-
cial system in the United States. 
(B) By gathering available information, 
the ability of United States banks and bank 
regulators to implement and comply with the 
provisions of Basel II, including— 
(i) the costs of Basel II for financial 
institutions and regulators; 
(ii) the feasibility and appropriateness 
of Basel II’s statistical models; and
(iii) the ability of regulators to oversee 
capital requirement operations of financial 
institutions. 
(C) The ability of the United States finan-
cial institution regulatory agencies— 
(i) to attract and retain sufficient ex-
pertise, both among specialists and exam-
iners; and 
(ii) to conduct the necessary oversight 
of capital and risk modeling by regulated 
financial institutions subject to Basel II. 
SEC. 7. BI-ANNUAL FDIC SURVEY AND REPORT ON IN-
CREASING THE DEPOSIT BASE BY ENCOUR-
AGING USE OF DEPOSITORY INSTITUTIONS 
BY THE UNBANKED. 
The Federal Deposit Insurance Act (12 U.S.C. 1811 
et seq.) is amended by adding at the end the following 
new section: 
‘‘SEC. 49. BI-ANNUAL FDIC SURVEY AND REPORT ON EN-
COURAGING USE OF DEPOSITORY INSTITU-
TIONS BY THE UNBANKED. 
‘‘(a) SURVEY REQUIRED.— 
‘‘(1) IN GENERAL.—The Corporation shall con-
duct a bi-annual survey on efforts by insured deposi-
tory institutions to bring those individuals and fami-