# GAO finds banking agencies still struggle to retire outdated rules

**Published:** 2026-07-29T07:03:19.097Z  
**Topic:** Banking  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/37af7323-1c02-4e35-92fb-385a2d6b1c3e

GAO report shows agencies lack procedures to identify and prioritize obsolete regulations, risking continued compliance burdens for banks.

In a new Government Accountability Office (GAO) report, banking regulators still cannot reliably identify or retire outdated rules thirty years after the Economic Growth and Regulatory Paperwork Reduction Act was enacted, raising concerns about ongoing compliance costs for the industry【3】.  

| At a glance | |
|---|---|
| Legislation year | 1996 |
| GAO report release | July 2026 |
| Agencies with documented procedures | None reported |
| Prioritization practice | Not adopted |

## Lack of documented procedures

The GAO highlighted that banking agencies have not established documented processes for spotting unnecessary regulations or deciding whether issues raised in reviews merit action【3】. Without such procedures, the agencies cannot consistently apply leading practices that would improve the likelihood of meaningful burden reduction.  

## No systematic prioritization

Beyond missing procedures, the report found agencies have not adopted methods to prioritize rule reviews or assess the cumulative impact of multiple regulations on banks【3】. This gap means regulators may overlook the most significant compliance challenges, fail to evaluate trade‑offs, and lack a clear view of how overlapping rules affect regulated entities.  

## What to watch
- GAO’s upcoming recommendations and any agency responses slated for the next quarter.  
- Potential legislative or executive actions to mandate documented rule‑review procedures for banking regulators.  
- Industry feedback on the impact of aggregated regulatory burdens, especially as banks prepare for future compliance cycles.  

The GAO’s findings suggest that, despite the 1996 mandate, the federal banking oversight framework still falls short of systematically shedding obsolete regulations, leaving banks to shoulder unclear compliance costs and regulators to miss opportunities for efficiency gains.

## Sources
1. Boston Herald — [A seaplane carrying 11 crashes into an island north of Seattle and all aboard...](https://www.bostonherald.com/2026/07/24/seaplane-crash-rescue/)
2. CNBC — [IRS chief Frank Bisignano may have misled Congress, Democrats say](https://www.cnbc.com/2026/07/23/frank-bisignano-irs-misled-congress-warren-democrats.html)
3. PYMNTS.com — [Feds Say Banking Agencies Have Trouble Uncovering Outdated Rules | PYMNTS.com](https://www.pymnts.com/legal/2026/feds-say-banking-agencies-have-trouble-uncovering-outdated-rules/)

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Cite as: TrendWatcher, "GAO finds banking agencies still struggle to retire outdated rules", https://www.trendwatcher.in/article/37af7323-1c02-4e35-92fb-385a2d6b1c3e