[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4206 Reported in House (RH)]
<DOC>
Union Calendar No. 612
118th CONGRESS
2d Session
H. R. 4206
[Report No. 118-725]
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
November 1, 2024
Additional sponsor: Mr. Casten
November 1, 2024
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on June
20, 2023]
_______________________________________________________________________
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 2024''.
SEC. 2. CAPITAL REQUIREMENTS RELATING TO ACCUMULATED OTHER
COMPREHENSIVE INCOME.
(a) In General.--Section 171 of the Financial Stability Act of 2010
(12 U.S.C. 5371) is amended by adding at the end the following new
subsection:
``(d) 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 AOCI.
``(2) Definitions.--In this subsection:
``(A) AOCI.--The term `AOCI' means--
``(i) 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; or
``(ii) such other definition as the Federal
banking agencies may establish, by rule.
``(B) Covered financial institution.--
``(i) In general.--The term `covered
financial institution' means--
``(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;
``(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
``(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.
``(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--
``(I) that is substantially engaged
in insurance underwriting or commercial
activities; or
``(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) Transition Provision.--
(1) 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) phases in such requirement over time; and
(B) fully applies such requirement to covered
financial institutions on or before July 1, 2028.
(2) Definitions.--In this subsection:
(A) 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) 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) 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).
Union Calendar No. 612
118th CONGRESS
2d Session
H. R. 4206
[Report No. 118-725]
_______________________________________________________________________
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.
_______________________________________________________________________
November 1, 2024
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed