Short title

This Act may be cited as the

Stress Test Improvement Act of 2017

CCAR and DFAST reforms

Section 165(i) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5365(i)) is amended— (1)in paragraph (1)— (A)in subparagraph (B)(i)— (i)by striking 3 different and inserting 2 different; and (ii)by striking , adverse,; and (B)by adding at the end the following:

(C)

CCAR requirements

(i)

Limitation on qualitative capital planning objections

In carrying out CCAR, the Board of Governors may not object to a company’s capital plan on the basis of qualitative deficiencies in the company’s capital planning process. (ii)

CCAR defined

For purposes of this subparagraph and subparagraph (E), the term CCAR means the Comprehensive Capital Analysis and Review established by the Board of Governors.

; and

(2)in paragraph (2)— (A)in subparagraph (A), by striking semiannual and inserting annual; and (B)in subparagraph (C)(ii), by striking 3 different sets of conditions, including baseline, adverse, and inserting 2 different sets of conditions, including baseline.

Rule of construction

The amendments made by this Act may not be construed to prohibit an appropriate Federal banking agency (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) from— (1)ensuring the safety and soundness of an entity regulated by such an appropriate Federal banking agency; and (2)ensuring compliance with applicable laws, regulations, and supervisory policies, and the following of appropriate guidance, by an entity regulated by such an appropriate Federal banking agency.

Reduction of surplus funds of Federal reserve banks

(a)

In general

Section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is amended by striking $7,500,000,000 and inserting $7,480,000,000. (b)

Effective date

Subsection (a) shall take effect on June 1, 2018.