United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office General Government Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1999-07-06 monographic deposited born digital 64 p. GA 1.13:GGD-99-91 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-99-91 P0b002ee180377271 f:gg99091 DGPO 2010-08-12 2011-03-24 GAOREPORTS-GGD-99-91 machine generated eng fdlp REPORT GAOREPORTS-GGD-99-91 GGD-99-91 Computer security Banking regulation Lending institutions Bank management Bank examination Risk management Computer networks Electronic funds transfer Confidential communication Credit unions Internet Letter Report GGD

Internet banking heightens traditional banking risks. GAO's review of 81 examinations found that 44 percent of the depository institutions examined had not completely implemented risk-management steps that regulators said are needed to limit on-line banking risks. Shortcomings included some institutions' lack of approval of strategic plans by their board of directors and a lack of policies and procedures at some institutions for Internet banking operations. However, too few examinations had been done at the time of GAO's review to identify the extent of any industrywide Internet banking-related problems. Regulators attributed the limited number of examinations to a diversion of examiners to deal with the Year 2000 computer problems and to the limited number of examiners with expertise in information systems. GAO found that some regulators could use more systematic methods for identifying institutions' plans for new Internet banking systems and maintaining this information centrally. GAO also found variations in the supervisory approaches the regulators followed to help ensure that institutions mitigate the risks posed by Internet banking. Finally, GAO found that the five regulators are beginning to work together to study third-party firms providing Internet banking support services. GAO summarized this report in testimony before Congress; see: Electronic Banking: Enhancing Federal Oversight of Internet Banking Activities, by Richard J. Hillman, Associate Director for Financial Institutions and Markets Issues, before the Subcommittee on Domestic and International Monetary Policy, House Committee on Banking and Financial Services. GAO/T-GGD-99-152, Aug. 3 (25 pages). https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-99-91/html/GAOREPORTS-GGD-99-91.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GGD-99-91/pdf/GAOREPORTS-GGD-99-91.pdf GAO/GGD-99-91 https://www.govinfo.gov/app/details/GAOREPORTS-GGD-99-91 Letter Report GAO/GGD-99-91; Electronic Banking: Enhancing Federal Oversight of; Computer security Banking regulation Lending institutions Bank management Bank examination Risk management Computer networks Electronic funds transfer Confidential communication Credit unions Internet Title 12 Section 1464(d) Title 12 Section 1781et seq. Title 12 Section 1861-1867 12 U.S.C. 1464(d) 12 U.S.C. 1781et seq. 12 U.S.C. 1861-1867 Volume 112 Page 32 112 Stat. 32 Public Law 105-162