[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2121 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 504
115th CONGRESS
  2d Session
                                H. R. 2121

                          [Report No. 115-656]

     To require the appropriate Federal banking agencies to revise 
   regulations to specify that certain funds shall not be taken into 
account when calculating any supplementary leverage ratio for custodial 
                     banks, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 25, 2017

Mr. Rothfus (for himself, Mr. Foster, and Mr. Hultgren) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

                             April 26, 2018

Additional sponsors: Mr. Loudermilk, Mr. Capuano, Mr. Meeks, Mr. Barr, 
 Ms. Sinema, Ms. Velazquez, Mr. Gottheimer, Mr. Lynch, Mr. Zeldin, Mr. 
 Luetkemeyer, Mr. Ross, Ms. Moore, Mr. Himes, Mr. Hill, Mr. Huizenga, 
   Mr. Royce of California, Mr. Tipton, Mr. Budd, Mr. Pittenger, Mr. 
      Emmer, Mr. Stivers, Mr. McGovern, Mr. Donovan, Ms. Clark of 
Massachusetts, Mr. MacArthur, Mrs. Carolyn B. Maloney of New York, Mr. 
   Mooney of West Virginia, Mr. Poliquin, Mr. Banks of Indiana, Ms. 
 Tenney, Mr. Posey, Mr. Byrne, Mr. Messer, Mr. Moulton, Mr. Loebsack, 
                            and Mrs. Wagner

                             April 26, 2018

Reported with amendments, 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 April 
                               25, 2017]


_______________________________________________________________________

                                 A BILL


 
     To require the appropriate Federal banking agencies to revise 
   regulations to specify that certain funds shall not be taken into 
account when calculating any supplementary leverage ratio for custodial 
                     banks, 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 ``Pension, Endowment, and Mutual Fund 
Access to Banking Act''.

SEC. 2. TREATMENT OF FUNDS DEPOSITED WITH A CENTRAL BANK IN CALCULATING 
              THE APPLICABLE SUPPLEMENTARY LEVERAGE RATIO.

    (a) In General.--The funds of a custody bank that are deposited 
with a central bank shall not be taken into account when calculating 
the applicable supplementary leverage ratio for the custody bank.
    (b) Limitations.--
            (1) Amounts.--The amount of funds described under 
        subsection (a) shall be limited to--
                    (A) the total value of deposits of the custody bank 
                linked to fiduciary or custodial and safekeeping 
                accounts; or
                    (B) an amount that is greater than a percentage 
                specified by the appropriate Federal banking agency of 
                the total leverage exposure of the custody bank, based 
                on considerations such as the potential impact on the 
                safety and soundness of the custody bank and the 
                ability of the custody bank to continue to accept cash 
                deposits from customers that are linked to fiduciary or 
                custodial and safekeeping accounts.
            (2) High-quality central bank requirements.--Subsection (a) 
        only applies to central banks that are high-quality central 
        banks, including--
                    (A) the Federal Reserve System;
                    (B) the European Central Bank; and
                    (C) central banks of member countries of the 
                Organisation for Economic Co-operation and Development, 
                if--
                            (i) the central bank of such member country 
                        has been assigned a zero percent risk weight 
                        under the final rules titled ``Regulatory 
                        Capital Rules: Regulatory Capital, 
                        Implementation of Basel III, Capital Adequacy, 
                        Transition Provisions, Prompt Corrective 
                        Action, Standardized Approach for Risk-weighted 
                        Assets, Market Discipline and Disclosure 
                        Requirements, Advanced Approaches Risk-Based 
                        Capital Rule, and Market Risk Capital Rule'' 
                        (78 Fed. Reg. 62018; published Oct. 11, 2013, 
                        and 79 Fed. Reg. 20754; published April 14, 
                        2014); and
                            (ii) the sovereign debt of such member 
                        country is not in default or has not been in 
                        default during the previous five years.
    (c) Regulations.--Not later than 60 days after the date of the 
enactment of this Act, the appropriate Federal banking agencies shall 
revise applicable regulations to carry out this Act.
    (d) Definitions.--For purposes of this section:
            (1) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency'' has the meaning given 
        that term under section 3 of the Federal Deposit Insurance Act 
        (12 U.S.C. 1813).
            (2) Custody bank.--The term ``custody bank'' means a 
        depository institution holding company predominantly engaged in 
        custody, safekeeping, and asset servicing activities, including 
        any insured depository institution subsidiary of such a holding 
        company.
            (3) Depository institution holding company.--The term 
        ``depository institution holding company'' has the meaning 
        given that term under section 3 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813).
            (4) Insured depository institution.--The term ``insured 
        depository institution'' has the meaning given that term under 
        section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
        1813).
            (5) Supplementary leverage ratio.--The term ``supplementary 
        leverage ratio'' means the supplementary leverage ratio, 
        including applicable buffers, surcharges, and well-capitalized 
        requirements relating to such supplementary leverage ratio, as 
        defined by regulation of the appropriate Federal banking agency 
        in title 12, Code of Federal Regulations, as in effect on 
        October 1, 2017.
            Amend the title so as to read: ``A bill to ensure that 
        certain funds shall not be taken into account when calculating 
        any supplementary leverage ratio for custody banks, and for 
        other purposes.''.
                                                 Union Calendar No. 504

115th CONGRESS

  2d Session

                               H. R. 2121

                          [Report No. 115-656]

_______________________________________________________________________

                                 A BILL

     To require the appropriate Federal banking agencies to revise 
   regulations to specify that certain funds shall not be taken into 
account when calculating any supplementary leverage ratio for custodial 
                     banks, and for other purposes.

_______________________________________________________________________

                             April 26, 2018

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed