This bill would require large banks and bank holding companies, including private ones, to have a chief risk officer responsible for monitoring risks and reporting any issues. It would also allow the Federal Reserve to require smaller banks to have risk committees and chief risk officers.
Latest Action
Referred to the House Committee on Financial Services.
AI Summary
Plain-English explanation of this bill
This bill would require large banks and bank holding companies, including private ones, to have a chief risk officer responsible for monitoring risks and reporting any issues. It would also allow the Federal Reserve to require smaller banks to have risk committees and chief risk officers.
Last updated: 12/30/2025
Official Summary
Congressional Research Service summary
<p><b>Chief Risk Officer Enforcement and Accountability Act </b></p> <p>This bill provides statutory authority for requiring large bank holding companies to appoint a chief risk officer and expands which companies must establish a risk committee and appoint a chief risk officer. Currently, only large bank holding companies that are public companies are required to establish risk committees and, by regulation, have chief risk officers. Under the bill, risk committees and chief risk officers are also required for (1) privately-held large bank holding companies, and (2) large banks that do not have a holding company. </p> <p>Further, the Federal Reserve Board is allowed to require smaller bank holding companies to establish a risk committee and appoint a chief risk officer. Currently, the board is allowed to require smaller bank companies that are public companies establish risk committees. </p> <p>Chief risk officers are responsible for the establishment of risk limits, monitoring compliance, and reporting any deficiencies to the risk committee. </p>
Key Points
Main provisions of the bill
Requires large banks and bank holding companies, including private ones, to have a chief risk officer
Chief risk officers are responsible for establishing risk limits, monitoring compliance, and reporting deficiencies to the risk committee
Allows the Federal Reserve to require smaller banks to have risk committees and chief risk officers
How This Impacts Americans
Potential effects on citizens and communities
This bill would affect large banks and bank holding companies as well as smaller banks that could be required to appoint chief risk officers. The goal is to improve risk management and oversight in the banking sector to prevent future financial crises.
Policy Areas
Primary Policy Area
Finance and Financial Sector
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
4062, 119th Congress (2025). "MONARCH Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-4062
