It found that at depository institutions, inconsistencies in depository institution regulators' examination activities can result in different conclusions regarding the safety and soundness of an institution as well as difficulties identifying emerging trends.

The GAO suggested, among other improvements, that Congress consider consolidating the number of federal agencies involved in overseeing the safety and soundness of depository institutions, including transferring the remaining prudential regulators' consumer protection authorities over large depository institutions to the CFPB.

The GAO looked at the fragmentation caused by the Dodd-Frank Act and ascertained that the act helped reduce fragmentation in consumer financial protection oversight by consolidating authority for a number of consumer financial protection laws that have been handled by seven different agencies. The act does, however, limit the CFPB's authority to regulate certain institutions – those with $10 billion or more in assets.

That $10 billion in assets designation created a fragmentation of consumer financial protection laws, such as in the case of the NCUA, which is the prudential regulator for consumer protection for institutions with less than $10 billion in assets.

The NCUA was one of several agencies reported as having additional overlapping oversight. The regulator is the deposit insurer for both federal credit unions and most state-chartered credit unions. The report said the NCUA's role as deposit insurer creates overlap with state credit union regulators.

Among other recommendations to Congress, the report recommended lawmakers consider whether changes to the financial regulatory structure are needed to reduce or better manage fragmentation and overlap in the oversight of the financial institutions and activities to improve the efficiency and effectiveness of oversight, as well as improve both the consistency of consumer and investor protections, in addition to providing financial oversight for similar institutions, products, risks and services.

In the comments section, the NCUA disagreed with the GAO's suggestion that Congress consider whether additional changes are needed to the regulatory structure. Further, the NCUA said that consideration of changes to the regulatory structure would need to include a careful review of the costs and benefits.

In response, the GAO said the costs and benefits of any options for improving and modernizing the structure would have to be part of any consideration of additional changes to the regulatory structure but would not preclude considering other options as it suggested.

Requesters of the report included former House Financial Services Committee member Sen. Shelley Moore Capito (R-W.V.), and current House Financial Services Committee members Reps. Sean Duffy (R-Wis.), Randy Neugebauer (R-Texas) and Patrick McHenry (R-N.C.).