H.R. 3312 — what changed
Systemic Risk Designation Improvement Act of 2017
From Reported in House to Engrossed in House. 2 sections amended and 1 added between Reported in House and Engrossed in House.
Sec. 3 Revisions to Board authority
Acquisitions— Section 163 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5363) is amended by striking “with total consolidated assets equal to or greater than $50,000,000,000” each place such term appears and inserting “which has been identified as a global systemically important bank holding company pursuant to section 217.402 of title 12, Code of Federal Regulations, or subjected to a determination under subsection (l) of section 165”.
Management interlocks— Section 164 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5364) is amended by striking “with total consolidated assets equal to or greater than $50,000,000,000” and inserting “which has been identified as a global systemically important bank holding company pursuant to section 217.402 of title 12, Code of Federal Regulations, or subjected to a determination under subsection (l) of section 165”.
Enhanced supervision and prudential standards— Section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5365) is amended—
in subsection (a), by striking “with total consolidated assets equal to or greater than $50,000,000,000” and inserting “which have been identified as global systemically important bank holding companies pursuant to section 217.402 of title 12, Code of Federal Regulations, or subjected to a determination under subsection (l)”;
in subsection (a)(2)—
by striking “(A) In general.—”;
in subparagraph (A), by striking “may” and inserting “shall”; and
changed
by striking subparagraph (B);(B); and
in subsection (j), by striking “with total consolidated assets equal to or greater than $50,000,000,000” and inserting “which has been identified as a global systemically important bank holding company pursuant to section 217.402 of title 12, Code of Federal Regulations, or subjected to a determination under subsection (l)”.
Advanced tailoring— Section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5365) is amended by adding at the end the following:
“(l) Additional bank holding companies subject to enhanced supervision and prudential standards by tailored regulation
“(1) Determination—The Board of Governors may, within the limits of its existing resources—
“(A) determine that a bank holding company that has not been identified as a global systemically important bank holding company pursuant to section 217.402 of title 12, Code of Federal Regulations, shall be subject to certain enhanced supervision or prudential standards under this section, tailored to the risks presented, based on the considerations in paragraph (3), where material financial distress at the bank holding company, or the nature, scope, size, scale, concentration, interconnectedness, or mix of the activities of the individual bank holding company, could pose a threat to the financial stability of the United States; or
“(B) by regulation determine that a category of bank holding companies that have not been identified as global systemically important bank holding companies pursuant to section 217.402 of title 12, Code of Federal Regulations, shall be subject to certain enhanced supervision or prudential standards under this section, tailored to the risk presented by the category of bank holding companies, based on the considerations in paragraph (3), where material financial distress at the category of bank holding companies, or the nature, scope, size, scale, concentration, interconnectedness, or mix of the activities of the category of bank holding companies, could pose a threat to the financial stability of the United States.
changed
“(2) Council approval of regulations with respect to categories—Notwithstanding paragraph (1)(B), a regulation issued by the Board of Governors to make a determination under such paragraph (1)(B) shall not take effect unless the Council, by a vote of not fewer than 2/3 two-thirds of the voting members then serving, including an affirmative vote by the Chairperson, approves the metrics used by the Board of Governors in establishing such regulation.
“(3) Considerations—In making any determination under paragraph (1), the Board of Governors shall consider the following factors:
“(A) The size of the bank holding company.
“(B) The interconnectedness of the bank holding company.
“(C) The extent of readily available substitutes or financial institution infrastructure for the services of the bank holding company.
“(D) The global cross-jurisdictional activity of the bank holding company.
“(E) The complexity of the bank holding company.
“(4) Consistent application of considerations—In making a determination under paragraph (1), the Board of Governors shall ensure that bank holding companies that are similarly situated with respect to the factors described under paragraph (3), are treated similarly for purposes of any enhanced supervision or prudential standards applied under this section.
“(5) Use of currently reported data to avoid unnecessary burden—For purposes of making a determination under paragraph (1), the Board of Governors shall make use of data already being reported to the Board of Governors, including from calculating a bank holding company’s systemic indicator score, in order to avoid placing an unnecessary burden on bank holding companies.”
Systemic identification— Section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5365), as amended by subsection (d), is further amended by adding at the end the following:
“(m) Systemic identification—With respect to the identification of bank holding companies as global systemically important bank holding companies pursuant to section 217.402 of title 12, Code of Federal Regulations, or subjected to a determination under subsection (l), the Board of Governors shall—
“(1) publish, including on the Board of Governors’s website, a list of all bank holding companies that have been so identified, and keep such list current; and
“(2) solicit feedback from the Council on the identification process and on the application of such process to specific bank holding companies.”
removed
Conforming Amendment— The second subsection (s) (relating to “Assessments, Fees, and Other Charges for Certain Companies”) of section 11 of the Federal Reserve Act (12 U.S.C. 248) is amended—
removed
by redesignating such subsection as subsection (t); and
removed
in paragraph (2)(A), by striking “having total consolidated assets of $50,000,000,000 or more” and inserting “which have been identified as global systemically important bank holding companies pursuant to section 217.402 of title 12, Code of Federal Regulations, or subjected to a determination under subsection (l) of section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act”.
Sec. 5 Existing assessment termination schedule
added
Temporary extension of existing assessment—
added
In general— Each bank holding company that, on the day that is 24 months following the date of the enactment of this Act, has total consolidated assets equal to or greater than $50,000,000,000, has not been identified as a global systemically important bank holding company pursuant to section 217.402 of title 12, Code of Federal Regulations, and has not been subjected to a determination under subsection (l) of section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, shall be subject to assessments by the Secretary of the Treasury to the same extent as a bank holding company that has been so identified or subjected.
added
Considerations— In making assessments pursuant to paragraph (1), the Secretary of the Treasury shall take into account differences among the bank holding companies subject to such assessment, based on the considerations for establishing the prudential standards under section 115 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5325).
added
Limitation on amount of assessments— The aggregate amount collected pursuant to paragraph (1) from all bank holding companies assessed under such paragraph shall be $58,000,000.
added
Payment period options— The Secretary of the Treasury shall offer the option of payments spread out before the end of the 48-month period following the date of the enactment of this Act, or shorter periods including the option of a one-time payment, at the discretion of each bank holding company paying assessments pursuant to paragraph (1).
added
Assessments to be made in addition to any other assessments— The assessments collected pursuant to paragraph (1) shall be in addition to, and not as a replacement of, any assessments required under any other law.
added
Treatment upon determination— A bank holding company assessed under this section shall no longer be subject to such assessments in the event it is identified as a global systemically important bank holding company pursuant to section 217.402 of title 12, Code of Federal Regulations, or subjected to a determination under subsection (l) of section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Any prior payments made by such a banking holding company pursuant to an assessment under this section shall be nonrefundable.
removed
The amendments made by this Act shall take effect after the end of the 1-year 18-month period following the date of the enactment of this Act.
Sec. 6 Effective date
addedadded The amendments made by this Act shall take effect after the end of the 18-month period following the date of the enactment of this Act.