SEC. 401. Enhanced Supervision and Prudential Standards for Certain Bank Holding Companies.
in subsection (a)—
in paragraph (1), in the matter preceding subparagraph (A), by striking “ $50,000,000,000” and inserting “ $250,000,000,000”; and
in paragraph (2)—
in subparagraph (A), by striking “ may” and inserting “ shall”;
in subparagraph (B), by striking “ $50,000,000,000” and inserting “ the applicable threshold”; and
by adding at the end the following:
“(C) Risks to financial stability and safety and soundness.—The Board of Governors may by order or rule promulgated pursuant to section 553 of title 5, United States Code, apply any prudential standard established under this section to any bank holding company or bank holding companies with total consolidated assets equal to or greater than $100,000,000,000 to which the prudential standard does not otherwise apply provided that the Board of Governors—
“(i) determines that application of the prudential standard is appropriate—
“(I) to prevent or mitigate risks to the financial stability of the United States, as described in paragraph (1); or
“(II) to promote the safety and soundness of the bank holding company or bank holding companies; and
“(ii) takes into consideration the bank holding company’s or bank holding companies’ capital structure, riskiness, complexity, financial activities (including financial activities of subsidiaries), size, and any other risk-related factors that the Board of Governors deems appropriate.”
in subsection (b)(1)—
in subparagraph (A)(iv), by striking “ and credit exposure report”; and
in subparagraph (B)(ii), by inserting “ , including credit exposure reports” before the semicolon at the end;
in subsection (d)(2), in the matter preceding subparagraph (A), by striking “ shall” and inserting “ may”;
in subsection (h)(2), by striking “ $10,000,000,000” each place that term appears and inserting “ $50,000,000,000”;
in subsection (i)—
in paragraph (1)(B)(i)—
by striking “ 3” and inserting “ 2”; and
by striking “ , adverse,”; and
in paragraph (2)—
in subparagraph (A)—
in the first sentence, by striking “ semiannual” and inserting “ periodic”; and
in the second sentence—
by striking “ $10,000,000,000” and inserting “ $250,000,000,000”; and
by striking “ annual” and inserting “ periodic”; and
in subparagraph (C)(ii)—
by striking “ 3” and inserting “ 2”; and
by striking “ , adverse,”; and
in subsection (j)(1), in the first sentence, by striking “ $50,000,000,000” and inserting “ $250,000,000,000”.
Rule of Construction.— Nothing in subsection (a) shall be construed to limit—
the authority of the Board of Governors of the Federal Reserve System, in prescribing prudential standards under section 165 of the Financial Stability Act of 2010 (12 U.S.C. 5365) or any other law, to tailor or differentiate among companies on an individual basis or by category, taking into consideration their capital structure, riskiness, complexity, financial activities (including financial activities of their subsidiaries), size, and any other risk-related factors that the Board of Governors deems appropriate; or
the supervisory, regulatory, or enforcement authority of an appropriate Federal banking agency to further the safe and sound operation of an institution under the supervision of the appropriate Federal banking agency.
Technical and Conforming Amendments.—
Financial stability act of 2010.— The Financial Stability Act of 2010 (12 U.S.C. 5311 et seq.) is amended—
in section 115(a)(2)(B) (12 U.S.C. 5325(a)(2)(B)), by striking “ $50,000,000,000” and inserting “ the applicable threshold”;
in section 116(a) (12 U.S.C. 5326(a)), in the matter preceding paragraph (1), by striking “ $50,000,000,000” and inserting “ $250,000,000,000”;
in section 121(a) (12 U.S.C. 5331(a)), in the matter preceding paragraph (1), by striking “ $50,000,000,000” and inserting “ $250,000,000,000”;
in section 155(d) (12 U.S.C. 5345(d)), by striking “ 50,000,000,000” and inserting “ $250,000,000,000”;
in section 163(b) (12 U.S.C. 5363(b)), by striking “ $50,000,000,000” each place that term appears and inserting “ $250,000,000,000”; and
in section 164 (12 U.S.C. 5364), by striking “ $50,000,000,000” and inserting “ $250,000,000,000”.
Federal reserve act.— The second subsection (s) (relating to assessments) of section 11 of the Federal Reserve Act (12 U.S.C. 248(s)) is amended—
in paragraph (2)—
in subparagraph (A), by striking “ $50,000,000,000” and inserting “ $100,000,000,000”; and
in subparagraph (B), by striking “ $50,000,000,000” and inserting “ $100,000,000,000”; and
by adding at the end the following:
“(3) Tailoring assessments.—In collecting assessments, fees, or other charges under paragraph (1) from each company described in paragraph (2) with total consolidated assets of between $100,000,000,000 and $250,000,000,000, the Board shall adjust the amount charged to reflect any changes in supervisory and regulatory responsibilities resulting from the Economic Growth, Regulatory Relief, and Consumer Protection Act with respect to each such company.”
Effective Date.—
In general.— Except as provided in paragraph (2), the amendments made by this section shall take effect on the date that is 18 months after the date of enactment of this Act.
Exception.— Notwithstanding paragraph (1), the amendments made by this section shall take effect on the date of enactment of this Act with respect to any bank holding company with total consolidated assets of less than $100,000,000,000.
Additional authority.— Before the effective date described in paragraph (1), the Board of Governors of the Federal Reserve System may by order exempt any bank holding company with total consolidated assets of less than $250,000,000,000 from any prudential standard under section 165 of the Financial Stability Act of 2010 (12 U.S.C. 5365).
Rule of construction.— Nothing in this section shall be construed to prohibit the Board of Governors of the Federal Reserve System from issuing an order or rule making under section 165(a)(2)(C) of the Financial Stability Act of 2010 (12 U.S.C. 5365(a)(2)(C)), as added by this section, before the effective date described in paragraph (1).
Supervisory Stress Test.— Beginning on the effective date described in subsection (d)(1), the Board of Governors of the Federal Reserve System shall, on a periodic basis, conduct supervisory stress tests of bank holding companies with total consolidated assets equal to or greater than $100,000,000,000 and total consolidated assets of less than $250,000,000,000 to evaluate whether such bank holding companies have the capital, on a total consolidated basis, necessary to absorb losses as a result of adverse economic conditions.
Global Systemically Important Bank Holding Companies.— Any bank holding company, regardless of asset size, that has been identified as a global systemically important BHC under section 217.402 of title 12, Code of Federal Regulations, shall be considered a bank holding company with total consolidated assets equal to or greater than $250,000,000,000 with respect to the application of standards or requirements under—
this section;
sections 116(a), 121(a), 155(d), 163(b), 164, and 165 of the Financial Stability Act of 2010 (12 U.S.C. 5326(a), 5331(a), 5345(d), 5363(b), 5364, 5365); and
paragraph (2)(A) of the second subsection (s) (relating to assessments) of section 11 of the Federal Reserve Act (12 U.S.C. 248(s)(2)).
Clarification for Foreign Banks.— Nothing in this section shall be construed to—
affect the legal effect of the final rule of the Board of Governors of the Federal Reserve System entitled “Enhanced Prudential Standards for Bank Holding Companies and Foreign Banking Organizations” (79 Fed. Reg. 17240 (March 27, 2014)) as applied to foreign banking organizations with total consolidated assets equal to or greater than $100,000,000,000; or
limit the authority of the Board of Governors of the Federal Reserve System to require the establishment of an intermediate holding company under, implement enhanced prudential standards with respect to, or tailor the regulation of a foreign banking organization with total consolidated assets equal to or greater than $100,000,000,000.