[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3312 Engrossed in House (EH)]

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115th CONGRESS
  1st Session
                                H. R. 3312

_______________________________________________________________________

                                 AN ACT


 
To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act 
   to specify when bank holding companies may be subject to certain 
             enhanced supervision, 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 ``Systemic Risk Designation 
Improvement Act of 2017''.

SEC. 2. REVISIONS TO COUNCIL AUTHORITY.

    (a) Purposes and Duties.--Section 112 of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (12 U.S.C. 5322) is amended in 
subsection (a)(2)(I) by inserting before the semicolon ``, which have 
been identified as global systemically important bank holding companies 
pursuant to section 217.402 of title 12, Code of Federal Regulations, 
or subjected to a determination under subsection (l) of section 165''.
    (b) Enhanced Supervision.--Section 115 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (12 U.S.C. 5325) is amended--
            (1) in subsection (a)(1), by striking ``large, 
        interconnected bank holding companies'' and inserting ``bank 
        holding companies which have been identified as global 
        systemically important bank holding companies pursuant to 
        section 217.402 of title 12, Code of Federal Regulations, or 
        subjected to a determination under subsection (l) of section 
        165''; and
            (2) in subsection (a)(2)--
                    (A) in subparagraph (A), by striking ``; or'' at 
                the end and inserting a period;
                    (B) by striking ``the Council may'' and all that 
                follows through ``differentiate'' and inserting ``the 
                Council may differentiate''; and
                    (C) by striking subparagraph (B).
    (c) Reports.--Section 116(a) of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 5326(a)) is amended by striking 
``with total consolidated assets of $50,000,000,000 or greater'' and 
inserting ``which has been identified as a global systemically 
important bank holding company pursuant to section 217.402 of title 12, 
Code of Federal Regulations, or subjected to a determination under 
subsection (l) of section 165''.
    (d) Mitigation.--Section 121(a) of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (12 U.S.C. 5331) is amended by 
striking ``with total consolidated assets of $50,000,000,000 or more'' 
and inserting ``which has been identified as a global systemically 
important bank holding company pursuant to section 217.402 of title 12, 
Code of Federal Regulations, or subjected to a determination under 
subsection (l) of section 165''.
    (e) Office of Financial Research.--Section 155 of the Dodd-Frank 
Wall Street Reform and Consumer Protection Act (12 U.S.C. 5345) is 
amended in subsection (d) by striking ``with total consolidated assets 
of 50,000,000,000 or greater'' and inserting ``which have been 
identified as global systemically important bank holding companies 
pursuant to section 217.402 of title 12, Code of Federal Regulations, 
or subjected to a determination under subsection (l) of section 165''.

SEC. 3. REVISIONS TO BOARD AUTHORITY.

    (a) Acquisitions.--Section 163 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 5363) is amended by striking 
``with total consolidated assets equal to or greater than 
$50,000,000,000'' each place such term appears and inserting ``which 
has been identified as a global systemically important bank holding 
company pursuant to section 217.402 of title 12, Code of Federal 
Regulations, or subjected to a determination under subsection (l) of 
section 165''.
    (b) Management Interlocks.--Section 164 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (12 U.S.C. 5364) is amended 
by striking ``with total consolidated assets equal to or greater than 
$50,000,000,000'' and inserting ``which has been identified as a global 
systemically important bank holding company pursuant to section 217.402 
of title 12, Code of Federal Regulations, or subjected to a 
determination under subsection (l) of section 165''.
    (c) Enhanced Supervision and Prudential Standards.--Section 165 of 
the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 
U.S.C. 5365) is amended--
            (1) in subsection (a), by striking ``with total 
        consolidated assets equal to or greater than $50,000,000,000'' 
        and inserting ``which have been identified as global 
        systemically important bank holding companies pursuant to 
        section 217.402 of title 12, Code of Federal Regulations, or 
        subjected to a determination under subsection (l)'';
            (2) in subsection (a)(2)--
                    (A) by striking ``(A) In general.--'';
                    (B) in subparagraph (A), by striking ``may'' and 
                inserting ``shall''; and
                    (C) by striking subparagraph (B); and
            (3) in subsection (j), by striking ``with total 
        consolidated assets equal to or greater than $50,000,000,000'' 
        and inserting ``which has been identified as a global 
        systemically important bank holding company pursuant to section 
        217.402 of title 12, Code of Federal Regulations, or subjected 
        to a determination under subsection (l)''.
    (d) Advanced Tailoring.--Section 165 of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (12 U.S.C. 5365) is amended by 
adding at the end the following:
    ``(l) Additional Bank Holding Companies Subject to Enhanced 
Supervision and Prudential Standards by Tailored Regulation.--
            ``(1) Determination.--The Board of Governors may, within 
        the limits of its existing resources--
                    ``(A) determine that a bank holding company that 
                has not been identified as a global systemically 
                important bank holding company pursuant to section 
                217.402 of title 12, Code of Federal Regulations, shall 
                be subject to certain enhanced supervision or 
                prudential standards under this section, tailored to 
                the risks presented, based on the considerations in 
                paragraph (3), where material financial distress at the 
                bank holding company, or the nature, scope, size, 
                scale, concentration, interconnectedness, or mix of the 
                activities of the individual bank holding company, 
                could pose a threat to the financial stability of the 
                United States; or
                    ``(B) by regulation determine that a category of 
                bank holding companies that have not been identified as 
                global systemically important bank holding companies 
                pursuant to section 217.402 of title 12, Code of 
                Federal Regulations, shall be subject to certain 
                enhanced supervision or prudential standards under this 
                section, tailored to the risk presented by the category 
                of bank holding companies, based on the considerations 
                in paragraph (3), where material financial distress at 
                the category of bank holding companies, or the nature, 
                scope, size, scale, concentration, interconnectedness, 
                or mix of the activities of the category of bank 
                holding companies, could pose a threat to the financial 
                stability of the United States.
            ``(2) Council approval of regulations with respect to 
        categories.--Notwithstanding paragraph (1)(B), a regulation 
        issued by the Board of Governors to make a determination under 
        such paragraph (1)(B) shall not take effect unless the Council, 
        by a vote of not fewer than two-thirds of the voting members 
        then serving, including an affirmative vote by the Chairperson, 
        approves the metrics used by the Board of Governors in 
        establishing such regulation.
            ``(3) Considerations.--In making any determination under 
        paragraph (1), the Board of Governors shall consider the 
        following factors:
                    ``(A) The size of the bank holding company.
                    ``(B) The interconnectedness of the bank holding 
                company.
                    ``(C) The extent of readily available substitutes 
                or financial institution infrastructure for the 
                services of the bank holding company.
                    ``(D) The global cross-jurisdictional activity of 
                the bank holding company.
                    ``(E) The complexity of the bank holding company.
            ``(4) Consistent application of considerations.--In making 
        a determination under paragraph (1), the Board of Governors 
        shall ensure that bank holding companies that are similarly 
        situated with respect to the factors described under paragraph 
        (3), are treated similarly for purposes of any enhanced 
        supervision or prudential standards applied under this section.
            ``(5) Use of currently reported data to avoid unnecessary 
        burden.--For purposes of making a determination under paragraph 
        (1), the Board of Governors shall make use of data already 
        being reported to the Board of Governors, including from 
        calculating a bank holding company's systemic indicator score, 
        in order to avoid placing an unnecessary burden on bank holding 
        companies.''.
    (e) Systemic Identification.--Section 165 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (12 U.S.C. 5365), as amended 
by subsection (d), is further amended by adding at the end the 
following:
    ``(m) Systemic Identification.--With respect to the identification 
of bank holding companies as global systemically important bank holding 
companies pursuant to section 217.402 of title 12, Code of Federal 
Regulations, or subjected to a determination under subsection (l), the 
Board of Governors shall--
            ``(1) publish, including on the Board of Governors's 
        website, a list of all bank holding companies that have been so 
        identified, and keep such list current; and
            ``(2) solicit feedback from the Council on the 
        identification process and on the application of such process 
        to specific bank holding companies.''.

SEC. 4. RULE OF CONSTRUCTION.

    Nothing in this Act or the amendments made by this Act shall be 
construed to prohibit the Board of Governors of the Federal Reserve 
System from prescribing enhanced prudential standards for any bank 
holding company which the Board of Governors determines, based upon the 
bank holding company's size, interconnectedness, substitutability, 
global cross-jurisdictional activity, and complexity, could pose a 
safety and soundness risk to the stability of the United States banking 
or financial system but has not been designated as a global 
systemically important bank holding company.

SEC. 5. EXISTING ASSESSMENT TERMINATION SCHEDULE.

    (a) Temporary Extension of Existing Assessment.--
            (1) In general.--Each bank holding company that, on the day 
        that is 24 months following the date of the enactment of this 
        Act, has total consolidated assets equal to or greater than 
        $50,000,000,000, has not been identified as a global 
        systemically important bank holding company pursuant to section 
        217.402 of title 12, Code of Federal Regulations, and has not 
        been subjected to a determination under subsection (l) of 
        section 165 of the Dodd-Frank Wall Street Reform and Consumer 
        Protection Act, shall be subject to assessments by the 
        Secretary of the Treasury to the same extent as a bank holding 
        company that has been so identified or subjected.
            (2) Considerations.--In making assessments pursuant to 
        paragraph (1), the Secretary of the Treasury shall take into 
        account differences among the bank holding companies subject to 
        such assessment, based on the considerations for establishing 
        the prudential standards under section 115 of the Dodd-Frank 
        Wall Street Reform and Consumer Protection Act (12 U.S.C. 
        5325).
            (3) Limitation on amount of assessments.--The aggregate 
        amount collected pursuant to paragraph (1) from all bank 
        holding companies assessed under such paragraph shall be 
        $58,000,000.
            (4) Payment period options.--The Secretary of the Treasury 
        shall offer the option of payments spread out before the end of 
        the 48-month period following the date of the enactment of this 
        Act, or shorter periods including the option of a one-time 
        payment, at the discretion of each bank holding company paying 
        assessments pursuant to paragraph (1).
            (5) Assessments to be made in addition to any other 
        assessments.--The assessments collected pursuant to paragraph 
        (1) shall be in addition to, and not as a replacement of, any 
        assessments required under any other law.
    (b) Treatment Upon Determination.--A bank holding company assessed 
under this section shall no longer be subject to such assessments in 
the event it is identified as a global systemically important bank 
holding company pursuant to section 217.402 of title 12, Code of 
Federal Regulations, or subjected to a determination under subsection 
(l) of section 165 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act. Any prior payments made by such a banking holding 
company pursuant to an assessment under this section shall be 
nonrefundable.

SEC. 6. EFFECTIVE DATE.

    The amendments made by this Act shall take effect after the end of 
the 18-month period following the date of the enactment of this Act.

            Passed the House of Representatives December 19, 2017.

            Attest:

                                                                 Clerk.
115th CONGRESS

  1st Session

                               H. R. 3312

_______________________________________________________________________

                                 AN ACT

To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act 
   to specify when bank holding companies may be subject to certain 
             enhanced supervision, and for other purposes.