[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