[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4206 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 4206
To amend the Financial Stability Act of 2010 to require covered
financial institutions to include elements of accumulated other
comprehensive income when calculating capital for purposes of meeting
capital requirements, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 20, 2023
Mr. Sherman introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Financial Stability Act of 2010 to require covered
financial institutions to include elements of accumulated other
comprehensive income when calculating capital for purposes of meeting
capital requirements, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bank Safety Act of 2023''.
SEC. 2. INCLUSION OF ELEMENTS OF ACCUMULATED OTHER COMPREHENSIVE INCOME
IN CAPITAL REQUIREMENTS FOR COVERED FINANCIAL
INSTITUTIONS.
(a) In General.--Section 165 of the Financial Stability Act of 2010
(12 U.S.C. 5365) is amended by adding at the end the following new
subsection:
``(l) Inclusion of Elements of Accumulated Other Comprehensive
Income.--
``(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.
``(2) Covered financial institution defined.--In this
subsection, the term `covered financial institution' means--
``(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;
``(B) a insured depository institution over which a
bank holding company does not have control with total
consolidated assets greater than $100,000,000,000; or
``(C) any other bank holding company or insured
depository institution, as determined by the
appropriate Federal banking agencies.''.
(b) 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) 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.
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