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H.R. 4296 (115th): To place requirements on operational risk capital requirements for banking organizations established by an appropriate Federal banking agency.

The text of the bill below is as of Feb 28, 2018 (Referred to Senate Committee).


IIB

115th CONGRESS

2d Session

H. R. 4296

IN THE SENATE OF THE UNITED STATES

February 28, 2018

Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs

AN ACT

To place requirements on operational risk capital requirements for banking organizations established by an appropriate Federal banking agency.

1.

Operational risk capital requirements for banking organizations

(a)

In general

An appropriate Federal banking agency may not establish an operational risk capital requirement for banking organizations, unless such requirement—

(1)

is based primarily on the risks posed by a banking organization’s current activities and businesses;

(2)

is appropriately sensitive to the risks posed by such current activities and businesses;

(3)

is determined under a forward-looking assessment of potential losses that may arise out of a banking organization’s current activities, businesses, and exposures, which is not solely based on a banking organization’s historical losses; and

(4)

permits adjustments based on qualifying operational risk mitigants.

(b)

Definitions

For purposes of this section:

(1)

Appropriate Federal banking agency

The term appropriate Federal banking agency

(A)

has the meaning given such term under section 3 of the Federal Deposit Insurance Act; and

(B)

means the National Credit Union Administration, in the case of an insured credit union.

(2)

Banking organization

The term banking organization means—

(A)

an insured depository institution (as defined under section 3 of the Federal Deposit Insurance Act);

(B)

an insured credit union (as defined under section 101 of the Federal Credit Union Act);

(C)

a depository institution holding company (as defined under section 3 of the Federal Deposit Insurance Act);

(D)

a company that is treated as a bank holding company for purposes of section 8 of the International Banking Act; and

(E)

a U.S. intermediate holding company established by a foreign banking organization pursuant to section 252.153 of title 12, Code of Federal Regulations.

2.

Reduction of surplus funds of Federal reserve banks

(a)

In general

Section 7(a)(3)(A) of the Federal Reserve Act (12 U.S.C. 289(a)(3)(A)) is amended by striking $7,500,000,000 and inserting $7,468,571,428.

(b)

Effective date

Subsection (a) shall take effect on May 1, 2018.

Passed the House of Representatives February 27, 2018.

Karen L. Haas,

Clerk