US Codex
Bill
Notes

H.R. 4206 — what changed

Bank Safety Act of 2024

From Introduced in House to Reported in House. 2 sections amended between Introduced in House and Reported in House.

Section 1 Short title

changed This Act may be cited as the “Bank Safety Act of 2023”.2024”.

Sec. 2 Capital requirements relating to accumulated other comprehensive income

(a)
changed In general— Section 165 171 of the Financial Stability Act of 2010 (12 U.S.C. 5365) 5371) is amended by adding at the end the following new subsection:

changed “(l) “(d) Inclusion of elements of accumulated other comprehensive income

changed “(1) In general—The computation of capital for purposes of meeting capital requirements for a covered financial institution shall include all accumulated other comprehensive income components, except for accumulated net gains and losses on cash flow hedges related to items that are not recognized at fair value.AOCI.

changed “(2) Covered financial institution defined—In Definitions—In this subsection, the term “covered financial institution” means—subsection:

changed “(A) a bank holding company (as defined in section 2(a) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(a))) with total consolidated assets greater than $100,000,000,000;AOCI—The term “AOCI” means—

changed “(B) a insured depository institution over which a bank holding company does “(i) all accumulated other comprehensive income components, except for accumulated net gains and losses on cash flow hedges related to items that are not have control with total consolidated assets greater than $100,000,000,000; recognized at fair value; or

changed “(C) any “(ii) such other bank holding company or insured depository institution, definition as determined by the appropriate Federal banking agencies.”agencies may establish, by rule.

added “(B) Covered financial institution

added “(i) In general—The term “covered financial institution” means—

added “(I) a depository institution holding company (as defined in section 3 of the Federal Deposit Insurance Act) with total consolidated assets greater than $100,000,000,000;

added “(II) an insured depository institution over which a bank holding company does not have control with total consolidated assets greater than $100,000,000,000; or

added “(III) such other category of depository institution holding companies or insured depository institutions as may be jointly determined by the Federal banking agencies, by rule, based on an analysis of financial risk-related factors.

added “(ii) Exception—Unless the Board of Governors determines it to be necessary to ensure the safety and soundness of a covered financial institution, the term “covered financial institution” does not include a savings and loan holding company—

added “(I) that is substantially engaged in insurance underwriting or commercial activities; or

added “(II) with respect to which the Small Bank Holding Company and Savings and Loan Holding Company Policy Statement of the Board of Governors applies (12 CFR 225 app. C).”

(b)
added Transition provision—
(1)
added In general— The Federal banking agencies shall, jointly, establish a transition period for the application of the requirement under subsection (d) of section 171 of the Financial Stability Act of 2010 to a covered financial institution (including an opt out institution) that—
(A)
added phases in such requirement over time; and
(B)
added fully applies such requirement to covered financial institutions on or before July 1, 2028.
(2)
added Definitions— In this subsection:
(A)
added Covered financial institution— The term “covered financial institution” has the meaning given that term under section 171(d) of the Financial Stability Act of 2010.
(B)
added Federal banking agency— The term “Federal banking agency” has the meaning given that term under section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(C)
added Opt out institution— The term “opt out institution” means a covered financial institution that elected to opt out of the requirement to report accumulated other comprehensive income components pursuant to the rule titled “Changes to Applicability Thresholds for Regulatory Capital and Liquidity Requirements” (84 Fed. Reg. 59230; November 1, 2019).
(b)
removed Applicability— A covered financial institution (as defined in section 165(l) of the Financial Stability Act of 2010, as added by this Act) that elected to opt out of the requirement to report accumulated other comprehensive income components pursuant to the rule titled “Changes to Applicability Thresholds for Regulatory Capital and Liquidity Requirements” (84 Fed. Reg. 59230; November 1, 2019) shall be subject to the requirements of subsection (l) of section 165 of the Financial Stability Act of 2010, as added by this Act, on the effective date described in subsection (c).
(c)
removed Effective date— The appropriate Federal banking agencies (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) shall issue final rules to carry out this Act and the amendments made by this Act that shall take effect on a date not earlier than 60 days after the date of the enactment of this Act and not later than December 31, 2024.