--- kind: "diff" citation: "H.R. 2121" bill: "115-hr-2121" heading: "Pension, Endowment, and Mutual Fund Access to Banking Act" from: "ih" from_label: "Introduced in House" to: "rh" to_label: "Reported in House" sections_amended: 1 sections_added: 0 sections_removed: 0 url: "https://uscodex.org/bills/115/hr/2121/changes/rh" --- # H.R. 2121 — what changed H.R. 2121, Pension, Endowment, and Mutual Fund Access to Banking Act — 1 section amended between Introduced in House and Reported in House. Edits are marked `struck` and `inserted`. ## Sec. 2 Treatment of funds deposited with a central bank in calculating the applicable supplementary leverage ratio - (a) 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) Limitations— - (1) Amounts— The amount of funds described under subsection (a) shall be limited to— - (A) the total value of deposits of the custody bank linked to fiduciary or custodial and safekeeping accounts; or - (B) 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) High-quality central bank requirements— Subsection (a) only applies to central banks that are high-quality central banks, including— - (A) the Federal Reserve System; - (B) the European Central Bank; and - (C) central banks of member countries of the Organisation for Economic Co-operation and Development, if— - (i) 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) the sovereign debt of such member country is not in default or has not been in default during the previous five years. - (b) 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) 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) 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) amounts deposited with certain central banks, as determined through rulemaking by the appropriate Federal banking agencies. - (d) Definitions— For purposes of this section: - (1) 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) 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) Custodial bank— - (A) 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) 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) 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) [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) 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) 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.