118 HR 4206 IH: Bank Safety Act of 2023 U.S. House of Representatives 2023-06-20 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 CONGRESS1st SessionH. R. 4206IN THE HOUSE OF REPRESENTATIVESJune 20, 2023Mr. Sherman introduced the following bill; which was referred to the Committee on Financial ServicesA BILLTo 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.

1.

Short title

This Act may be cited as the Bank Safety Act of 2023.

2.

Inclusion of elements of accumulated other comprehensive income in capital requirements for covered financial institutions

(a)

In general

Section 165 of the Financial Stability Act of 2010 (12 U.S.C. 5365) is amended by adding at the end the following new subsection: (l)

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 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. (2)

Covered financial institution defined

In this subsection, the term covered financial institution means— (A)a bank holding company (as defined in section 2(a) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(a))) with total consolidated assets greater than $100,000,000,000; (B)a insured depository institution over which a bank holding company does not have control with total consolidated assets greater than $100,000,000,000; or (C)any other bank holding company or insured depository institution, as determined by the appropriate Federal banking agencies.. (b)

Applicability

A covered financial institution (as defined in section 165(l) of the Financial Stability Act of 2010, as added by this Act) 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) shall be subject to the requirements of subsection (l) of section 165 of the Financial Stability Act of 2010, as added by this Act, on the effective date described in subsection (c). (c)

Effective date

The appropriate Federal banking agencies (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) shall issue final rules to carry out this Act and the amendments made by this Act that shall take effect on a date not earlier than 60 days after the date of the enactment of this Act and not later than December 31, 2024.