GSIB Act of 2026

Bill Number

H.R. 7513

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Finance and Financial Sector

Status

Introduced

Latest Action

2026-02-11: Referred to the House Committee on Financial Services.

Last Updated

2026-02-27T14:32:31Z

AI-Generated Summary

Purpose of the Legislation

The Greater Supervision In Banking Act of 2026 (H.R. 7513), also known as the GSIB Act of 2026, aims to increase transparency and accountability for large, globally significant banks by requiring them to submit detailed annual reports to the Federal Reserve Board. These reports cover a wide range of business activities, risks, and practices, going beyond traditional financial oversight to include social, environmental, and governance issues.

Key Provisions

• Annual Reporting Requirement: Global systemically important bank holding companies (GSIBs)—major banks whose failure could threaten the global financial system—must provide an annual report to the Federal Reserve Board. The report describes the company's activities from the previous year and its goals for the upcoming year.
• Detailed Report Contents: The reports must include specific information on:
• Company structure, including size, complexity, subsidiaries, and branch locations of banking subsidiaries.
• Enforcement actions (e.g., penalties or settlements) against the company or its affiliates, covering violations of consumer protection, labor, and health/safety laws; the number of affected consumers, employees, or investors; and employee dismissals for misconduct, especially executives.
• Capital market activities, such as trading structures, inventory metrics for securities and derivatives, compliance with the Volcker Rule (a regulation limiting banks' risky trading), profit sources, and shareholder rights (e.g., ability to file lawsuits or proposals).
• Use of forced arbitration clauses in contracts with consumers, employees, investors, and contractors (clauses that require disputes to be resolved privately rather than in court).
• Compensation policies, including executive accountability, CEO pay compared to median employee pay, pay breakdowns by employee deciles (10% groups), minimum wage details, and vendor wage stipulations.
• Diversity in board and executive leadership; policies for workforce inclusion; and support for diverse contractors (e.g., minority-owned asset managers).
• Cybersecurity measures and consumer data protection.
• Whistleblower and ethics complaints: numbers, issues, and resolutions.
• Climate-related actions: emissions targets aligned with global warming limits (e.g., 1.5°C), use of offsets (carbon credits), fossil fuel financing, and risks from climate failure (e.g., 3°C warming impacts on solvency).
• Involvement in environmental harms, especially to communities of color or indigenous peoples: financing for polluting projects (e.g., oil extraction in low-income or minority areas), global deforestation/mining, offset impacts, and mitigation efforts (e.g., consent from indigenous groups or cleanup funds).
• Investments in minority depository institutions (banks serving underserved communities) and community development financial institutions.
• Use of artificial intelligence (AI): benefits/risks to consumers, shareholders, climate, employees, and markets; risk mitigation like testing or transparency reports.
• Recent mergers or acquisitions: effects on size/complexity, branch closures, market concentration (using the Herfindahl-Hirschman Index, a measure of market competition), deposit shares, approving agencies, and any imposed conditions.
• A 10-year comparison of changes in the above areas.
• Public Disclosure: The Federal Reserve must make all reports publicly available, including on its website.
• Definition: GSIBs are defined as in existing federal regulations (12 CFR 217.402), typically including the largest U.S. banks like JPMorgan Chase or Bank of America.

Significant Changes to Existing Law

This bill amends the Bank Holding Company Act of 1956 by adding a new Section 15, introducing mandatory annual reporting for GSIBs that did not previously exist in this comprehensive form. Prior laws focused mainly on financial stability and risk; this expands to require disclosures on non-financial issues like labor practices, environmental impacts, diversity, AI risks, and shareholder governance. It also mandates public release of reports, enhancing transparency beyond internal regulatory reviews.

Potential Impacts

• On Government Agencies: The Federal Reserve Board gains extensive new data for oversight, potentially improving supervision of systemic risks but increasing administrative workload for reviewing and publishing reports.
• On Citizens: Greater public insight into bank practices could empower consumers and employees (e.g., via details on pay gaps, arbitration, or environmental harms), aiding informed decisions and advocacy for better protections. It may highlight risks like climate or AI issues affecting everyday banking services.
• On International Relations: Disclosures on global activities (e.g., financing fossil fuels or indigenous land projects abroad) could influence U.S. banks' reputations overseas, potentially aligning practices with international standards on climate and human rights, though it might strain relations with countries reliant on U.S. investment in extractive industries.

Main Stakeholders Affected

• GSIBs: Large banks face new compliance burdens, including data collection and potential reputational risks from public disclosures.
• Federal Reserve Board: Responsible for receiving, reviewing, and publishing reports, strengthening its regulatory role.
• Consumers, Employees, and Investors: Benefit from transparency on harms, pay equity, arbitration, and risks, enabling better protection and participation.
• Communities and Environmental Groups: Gain visibility into banks' roles in climate change, pollution, and inequities, supporting advocacy for mitigation.
• Minority and Community Institutions: Highlighted through required investment reporting, potentially increasing support flows.
• Whistleblowers and Diverse Contractors: Reports on complaints and diversity policies could foster accountability and opportunities.

Notable Legal, Constitutional, or Political Implications

• Legal: Increases regulatory reporting requirements, which could lead to more enforcement actions if disclosures reveal violations; may challenge banks' privacy claims but aligns with existing disclosure laws (e.g., securities regulations). No direct conflicts with current rules, but implementation might require Federal Reserve rulemaking.
• Constitutional: Falls within Congress's authority to regulate interstate commerce and banking under the Commerce Clause; no apparent free speech or due process issues, as reporting is factual and public interest-driven.
• Political: Reflects emphasis on holistic bank accountability, incorporating environmental, social, and governance (ESG) factors alongside financial ones; could spark debates on regulatory overreach versus necessary oversight of "too-big-to-fail" institutions.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Pressley, Ayanna [D-MA-7]

Cosponsors (2)

Rep. Green, Al [D-TX-9], Rep. Tlaib, Rashida [D-MI-12]

Recent Actions

• 2026-02-11: Referred to the House Committee on Financial Services.
• 2026-02-11: Introduced in House
• 2026-02-11: Introduced in House

Bill Versions

• Greater Supervision In Banking Act of 2026 — issued 2026-02-11 — PDF (10 pages)