US Codex
Bill
Notes

H.R. 2121 — what changed

Pension, Endowment, and Mutual Fund Access to Banking Act

From Introduced in House to Reported in House. 1 section amended between Introduced in House and Reported in House.

Sec. 2 Treatment of funds deposited with a central bank in calculating the applicable supplementary leverage ratio

(a)
changed In general— The appropriate Federal banking agencies shall amend the relevant sections of title 12, Code of Federal Regulations, to specify that funds of a custodial custody bank that are deposited with a central bank shall not be taken into account when calculating the applicable supplementary leverage ratio for the custodial bank under such regulations.custody bank.
(b)
added Limitations—
(1)
added Amounts— The amount of funds described under subsection (a) shall be limited to—
(A)
added the total value of deposits of the custody bank linked to fiduciary or custodial and safekeeping accounts; or
(B)
added an amount that is greater than a percentage specified by the appropriate Federal banking agency of the total leverage exposure of the custody bank, based on considerations such as the potential impact on the safety and soundness of the custody bank and the ability of the custody bank to continue to accept cash deposits from customers that are linked to fiduciary or custodial and safekeeping accounts.
(2)
added High-quality central bank requirements— Subsection (a) only applies to central banks that are high-quality central banks, including—
(A)
added the Federal Reserve System;
(B)
added the European Central Bank; and
(C)
added central banks of member countries of the Organisation for Economic Co-operation and Development, if—
(i)
added the central bank of such member country has been assigned a zero percent risk weight under the final rules titled “Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition Provisions, Prompt Corrective Action, Standardized Approach for Risk-weighted Assets, Market Discipline and Disclosure Requirements, Advanced Approaches Risk-Based Capital Rule, and Market Risk Capital Rule” (78 Fed. Reg. 62018; published Oct. 11, 2013, and 79 Fed. Reg. 20754; published April 14, 2014); and
(ii)
added the sovereign debt of such member country is not in default or has not been in default during the previous five years.
(b)
removed Limitation— The amount of funds described under subsection (a) may not exceed the total value of deposits of the custodial bank linked to fiduciary or custodial and safekeeping accounts.
(c)
changed Additional considerations—Regulations— The amount Not later than 60 days after the date of funds described under subsection (a) may be limited to—the enactment of this Act, the appropriate Federal banking agencies shall revise applicable regulations to carry out this Act.
(1)
removed an amount that is greater than a percentage specified by the appropriate Federal banking agency of the total leverage exposure of the custodial bank, based on considerations such as the potential impact on the safety and soundness of the custodial bank and the ability of the custodial bank to continue to accept cash deposits from customers that are linked to fiduciary or custodial and safekeeping accounts; and
(2)
removed amounts deposited with certain central banks, as determined through rulemaking by the appropriate Federal banking agencies.
(d)
Definitions— For purposes of this section:
(1)
changed Appropriate federal Federal banking agency— The term appropriate Federal banking agency has the meaning given that term under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(2)
added Custody bank— The term custody bank means a depository institution holding company predominantly engaged in custody, safekeeping, and asset servicing activities, including any insured depository institution subsidiary of such a holding company.
(2)
removed Custodial bank—
(A)
removed In general— The term custodial bank means a depository institution and the depository institution holding company of such depository institution, both of which are primarily engaged in custodial banking.
(B)
removed Custodial banking defined— For purposes of this paragraph, the appropriate Federal banking agencies may define the term custodial banking based on factors including the percentage of total revenues generated by custodial businesses and the level of assets under custody.
(3)
removed Depository institution— The term depository institution has the meaning given that term under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(3)
renumbered was (5)(6) Depository institution holding company— The term depository institution holding company has the meaning given that term under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(4)
added Insured depository institution— The term insured depository institution has the meaning given that term under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(5)
changed Supplementary leverage ratio— The term supplementary leverage ratio means the supplementary leverage ratio, including applicable buffers, surcharges, and well-capitalized requirements relating to such supplementary leverage ratio, as defined by regulation of the appropriate Federal banking agency in title 12, Code of Federal Regulations.Regulations, as in effect on October 1, 2017.