Washington, D.C. — The Bank Policy Institute, American Bankers Association and the Securities Industry and Financial Markets Association issued the following statement in response to the bicameral, bipartisan Federal Information Security Modernization Act of 2023 (FISMA), which would improve information security practices at federal agencies:
“Federal agencies should be held to the same standards as private companies when it comes to protecting sensitive consumer data and reporting cybersecurity incidents. FISMA will improve accountability among federal agencies and give financial institutions the critical information they need to protect their customers following a cyber threat.”
The legislation introduced last week (S. 2251 and H.R. 4552) includes two key provisions that would enhance transparency over federal agency information security practices. It would:
- Require federal agencies to notify private sector entities whose sensitive information is compromised during an agency cybersecurity incident; and
- Help inform financial institutions of any long-standing federal agency security shortcomings and the effect of those weaknesses by making the information accessible via an inspector general dashboard.
As the U.S. Senate Committee on Homeland Security & Government Affairs considers this legislation, BPI, ABA and SIFMA support these two provisions and look forward to working with Congress on the advancement of FISMA.
We thank the bill sponsors for their leadership on this important issue: Chairman of the Homeland Security and Governmental Affairs Committee Gary Peters (D-MI), Senator Josh Hawley (R-MO), Chairman and Ranking Member of the Committee on Oversight and Accountability James Comer (R-KY) and Jamie Raskin (D-MD), Chairwoman and Ranking Member of the Oversight Subcommittee on Cybersecurity, Information Technology, and Government Innovation Nancy Mace (R-SC) and Gerald E. Connolly (D-VA).
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About Bank Policy Institute.
The Bank Policy Institute (BPI) is a nonpartisan public policy, research and advocacy group, representing the nation’s leading banks and their customers. Our members include universal banks, regional banks and the major foreign banks doing business in the United States. Collectively, they employ almost 2 million Americans, make nearly half of the nation’s small business loans, and are an engine for financial innovation and economic growth.
About the American Bankers Association.
The American Bankers Association is the voice of the nation’s $23.7 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2.1 million people, safeguard $18.7 trillion in deposits and extend $12.2 trillion in loans.
About SIFMA.
SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s one million employees, we advocate on legislation, regulation and business policy affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development.
SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA).
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