118 HR 8287 IH: Stress Testing Accountability and Transparency Act U.S. House of Representatives 2024-05-08 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I118th CONGRESS2d SessionH. R. 8287IN THE HOUSE OF REPRESENTATIVESMay 8, 2024Mr. Barr introduced the following bill; which was referred to the Committee on Financial ServicesA BILLTo require the Board of Governors of the Federal Reserve System to issue a rule relating to stress capital buffer requirements, and for other purposes.

1.

Short title

This Act may be cited as the Stress Testing Accountability and Transparency Act.

2.

Rulemaking related to stress capital buffer requirements

(a)

In general

Not later than 90 days after the date of the enactment of this section, the Board of Governors of the Federal Reserve System (in this Act referred to as the Board) shall issue a rule to establish any models, assumptions, formulas, or other decisional methodologies that are used to determine any component or subcomponent of the stress capital buffer requirement for a bank holding company.(b)

Changes

The Board may only make changes to the rule issued under subsection (a) through notice and comment rulemaking.(c)

Stress capital buffer requirement defined

The term stress capital buffer requirement has the meaning given the term in section 225.8(c) of title 12 of the Code of Federal Regulations.

3.

Rulemaking relating to stress testing

(a)

In general

Beginning in the first calendar year after the date of the enactment of this section, the Board shall, not less than 30 days before conducting a stress test pursuant to section 165(i) of the Financial Stability Act of 2010, issue a rule to establish each scenario used to be used in such stress test. (b)

Prohibition

The Board may not, by rule or otherwise, subject any nonbank financial company to a climate-related stress test using the authority provided in section 165(i) of the Financial Stability Act of 2010.

4.

GAO report

(a)

In general

The Comptroller General of the United States shall, every 3 years, conduct a study and submit a report to the Congress with respect to the stress tests conducted by the Board under section 165(i) of the Financial Stability Act of 2010 in the 3 most recent calendar years.(b)

Contents

The report submitted to the Congress under subsection (a) shall—(1)evaluate whether the stress tests are sufficiently robust and promote preparedness; and(2)consider whether the stress tests adequately identify salient risks to—(A)the safety and soundness of the nonbank financial institutions subjected to stress tests; and(B)the stability of the United States financial system.