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FDIC OIG Issues Report on Cost of Rulemaking
Today, the FDIC Office of Inspector General published an Evaluation Report of the FDIC’s Cost Benefit Analysis Process for Rulemaking. As detailed in the report findings, the OIG concluded the FDIC’s cost benefit analysis process is not consistent with widely recognized best practices.
Specifically, the OIG found:
- The FDIC had not established and documented a process to determine when and how to perform cost benefit analyses;
- The FDIC did not leverage the expertise of its Regulatory Analysis Steering Committee (RAS) economists during initial rule development;
- The FDIC did not require the Chief Economist to concur on the cost benefit analyses performed;
- The FDIC was not transparent in its disclosure of cost benefit analyses to the public; and
- The FDIC did not perform cost benefit analyses after final rule issuance.
In its evaluation, the OIG reviewed the FDIC’s cost benefit analysis process for 40 rules finalized and published in the Federal Register from January 1, 2016 through December 31, 2018.