Congress would require big banks to appoint chief risk officers and limit growth if the job stays vacant
Also known as: Chief Risk Officer Enforcement and Accountability Act
Legislative Progress
Impacts
Key Points
- Requires certain large banking firms to appoint a Chief Risk Officer to lead company-wide risk oversight.
- Sets clear duties for the Chief Risk Officer, like setting risk limits, tracking compliance, and reporting problems and new risks.
- Makes the Chief Risk Officer report directly to both the bank’s risk committee and the CEO, aiming to keep risk warnings from being ignored.
- If the role becomes vacant, the bank must tell regulators within 24 hours and submit a hiring plan within 7 days.
- If the job stays open for 60+ days, the bank must tell the public and is blocked from growing its total assets until it hires someone.
Milestones
Referred to the House Committee on Financial Services.
Introduced in House
What Happens Next
Projected impacts based on AI analysis
Covered large banks ensure they have a Chief Risk Officer with the required reporting duties
Big banks would need to fill or formalize this role; customers and investors could see more consistent risk oversight over time.
Regulators write and publish rules for large banks (≥$50B) that do not have a bank holding company
Some large standalone banks would newly have to create a risk committee and appoint a Chief Risk Officer, changing how they manage lending and other risks.
24-hour vacancy notices begin when a covered bank’s Chief Risk Officer job opens
Regulators (including relevant state agencies) would find out quickly if a big bank loses its top risk leader, reducing the chance a long vacancy goes unnoticed.
7-day hiring plans are required after a Chief Risk Officer vacancy
Banks would have to show regulators how they will search for and hire a qualified replacement, creating pressure to move fast and document the plan.
60-day limit triggers public notice and a cap on asset growth if the Chief Risk Officer role stays vacant
If a big bank can’t hire a replacement within 60 days, it must publicly disclose the long vacancy and it cannot grow total assets beyond the level on the vacancy date until the job is filled, which could slow expansion or acquisitions.
Source Information
Document Type
Congressional Bill
Official Title
Chief Risk Officer Enforcement and Accountability Act
Sponsor
Cosponsors
(5)Data Sources
Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.