US Codex
Bill
Notes

H.R. 5270 — what changed

Stress Testing Accountability and Transparency Act

From Introduced in House to Reported in House. 3 sections amended between Introduced in House and Reported in House.

Sec. 2 Rulemaking related to stress capital buffer requirements

(a)
changed In general— Not later than 90 days after the date of the enactment of this section, the Board of Governors of the Federal Reserve System (in this Act referred to as the “Board”) shall issue a rule to establish any models, assumptions, formulas, or other decisional methodologies that are used to determine any component or subcomponent of the stress capital buffer requirement for a bank holding company.rule—
(1)
added establishing the models, assumptions, formulas, and other decisional methodologies that are used to conduct any stress test pursuant to section 165(i) of the Financial Stability Act of 2010 (12 U.S.C. 5365(i)), including any such test that is used to determine any component or subcomponent of the stress capital buffer requirement for a covered company; and
(2)
added to determine, where the Board has supervisory stress test results from two or more periodic analyses of a covered company, the covered company’s stress capital buffer requirement on the basis of supervisory stress test results from two or more periodic analyses of that covered company.
(b)
changed Changes— The Board may only make material changes to the methodologies established in the rule issued under subsection (a) (a)(1) through notice and comment rulemaking.
(c)
changed No double-Count—double-count— The Board shall ensure no double-count of capital requirements for the same risks in the stress capital buffer requirement and the risk-based capital requirements.
(d)
changed Stress capital buffer requirement defined—Definitions— In this section, the term “stress capital buffer requirement” has the meaning given the term in section 225.8(d) of title 12 of the Code of Federal Regulations.section:
(1)
added Covered company— The term “covered company” means a company to which section 225.8 of title 12, Code of Federal Regulations, or section 238.170 of title 12, Code of Federal Regulations, applies.
(2)
added Stress capital buffer requirement— The term “stress capital buffer requirement” has the meaning given that term under—
(A)
added section 225.8(d) of title 12, Code of Federal Regulations; and
(B)
added section 238.170(d) of title 12, Code of Federal Regulations.
(e)
added Rule of construction— Nothing in this section may be construed to imply that the Board is required to establish a stress capital buffer requirement for any bank holding company or any other company regulated by the Board.

Sec. 3 Rulemaking relating to stress testing

(a)
changed In general— Beginning in the first calendar year beginning after the date of the enactment of this section, the Board shall, not less than 30 60 days before conducting a stress test pursuant to section 165(i) of the Financial Stability Act of 2010, issue a rule to establish publicly disclose each scenario to be used in such stress test.
(b)
changed Prohibition— The Board may not, by rule or otherwise, subject any nonbank financial company or bank holding company to a climate-related stress test using the authority provided in section 165(i) of the Financial Stability Act of 2010.

Sec. 4 GAO report

(a)
In general— The Comptroller General of the United States shall, every 3 years, conduct a study and submit a report to the Congress with respect to the stress tests conducted by the Board under section 165(i) of the Financial Stability Act of 2010 in the 3 most recent calendar years.
(b)
Contents— The report submitted to the Congress under subsection (a) shall consider the effectiveness of the stress tests in evaluating—
(1)
changed the safety and soundness of the nonbank financial institutions companies and bank holding companies subjected to stress tests;tests; and
(2)
the stability of the United States financial system.