[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8337 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 8337
To amend the Federal banking laws to improve the safety and soundness
of the United States banking system, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 10, 2024
Mr. Barr introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal banking laws to improve the safety and soundness
of the United States banking system, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Bank Resilience
and Regulatory Improvement Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--FINANCIAL INSTITUTION REGULATORY TAILORING ENHANCEMENT
Sec. 101. Increased asset thresholds.
TITLE II--BANK FAILURE PREVENTION
Sec. 201. Complete record on an application.
TITLE III--STRESS CAPITAL BUFFER REQUIREMENTS
Sec. 301. Rulemaking related to stress capital buffer requirements.
Sec. 302. Rulemaking relating to stress testing.
Sec. 303. GAO report.
TITLE IV--BANK SUPERVISION APPEALS IMPROVEMENT
Sec. 401. Timeliness of examinations and required permission,
regulatory, and reporting guidance.
Sec. 402. Update of independent intra-agency appellate process for
reviewing material supervisory
determinations.
Sec. 403. Review of resolution actions resulting in a material loss.
TITLE V--REVIEW OF DISCOUNT WINDOW OPERATIONS
Sec. 501. Review of discount window operations.
TITLE VI--SMALL BANK HOLDING COMPANY RELIEF
Sec. 601. Changes required to the Small Bank Holding Company and
Savings and Loan Holding Company Policy
Statement.
TITLE I--FINANCIAL INSTITUTION REGULATORY TAILORING ENHANCEMENT
SEC. 101. INCREASED ASSET THRESHOLDS.
(a) Bureau Supervision.--Section 1025(a) of the Consumer Financial
Protection Act of 2010 (12 U.S.C. 5515) is amended by striking
``$10,000,000,000'' each place it occurs and inserting
``$50,000,000,000''.
(b) Durbin Amendment Requirements.--Section 921(a)(6) of the
Electronic Fund Transfer Act (15 U.S.C. 1693o-2(a)(6)) is amended by
striking ``$10,000,000,000'' and inserting ``$50,000,000,000''.
(c) Volker Rule Requirements.--Section 13(h)(1)(B)(i) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1851(h)(1)(B)(i)) is amended by
striking ``$10,000,000,000'' and inserting ``$50,000,000,000''.
(d) Qualified Mortgage Requirements.--Section 129C(b)(F)(i) of the
Truth in Lending Act (15 U.S.C. 1639c(b)(F)(i)) is amended by striking
``$10,000,000,000'' and inserting ``$50,000,000,000''.
(e) Leverage and Risk-Based Capital Requirements.--Section
201(a)(3)(A) of the Economic Growth, Regulatory Relief, and Consumer
Protection Act (12 U.S.C. 5371 note (a)(3)(A)) is amended by striking
``$10,000,000,000'' and inserting ``$50,000,000,000''.
TITLE II--BANK FAILURE PREVENTION
SEC. 201. COMPLETE RECORD ON AN APPLICATION.
(a) Bank Holding Companies.--Section 3(b)(1) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1842(b)(1)) is amended--
(1) by striking ``Upon receiving'' and inserting the
following:
``(A) In general.--Upon receiving'';
(2) by striking ``required'' and inserting ``acquired'';
(3) by striking ``In the event of the failure of the Board
to act on any application for approval under this section
within the ninety-one-day period which begins on the date of
submission to the Board of the complete record on that
application, the application shall be deemed to have been
granted.''; and
(4) by adding at the end the following:
``(B) Complete record on an application.--
``(i) Notice to applicant.--Not later than 30 days
after the date on which the Board receives an
application for approval under this section, the Board
shall transmit to the applicant a letter that either--
``(I) confirms the record on the
application is complete; or
``(II) details all additional information
that is required for the record on that
application to be complete.
``(ii) Extension of notice.--Notwithstanding clause
(i), the Board may, if an application is unusually
complex, extend the 30-day period described under
clause (i) for an additional 30 days.
``(iii) Receipt of response; deeming of complete
record.--Upon receipt of a response from an applicant
to a notice requesting additional information described
under clause (i)(II), the record on the application
shall be deemed complete unless the Board--
``(I) determines that the applicant's
response was materially deficient; and
``(II) not later than 30 days after the
date on which the Board received the response,
provides the applicant a detailed notice
describing the deficiencies.
``(iv) Treatment of third-party information.--In
determining whether the record on an application is
complete, the Board may take into account only
information provided by the applicant, and may not base
the determination of completeness on any information
(including reports, views, or recommendations) provided
by third parties.
``(C) Deadline for determination.--
``(i) In general.--Notwithstanding subparagraphs
(A) and (B), the Board shall grant or deny an
application submitted under this section not later than
90 days after the date on which the application was
initially submitted to the Board, regardless of whether
the record on such initial application was complete.
``(ii) Failure to make a determination.--If the
Board does not grant or deny an application within the
time period described under clause (i), such
application shall be deemed to have been granted.
``(iii) Tolling of period.--The Board may at any
time extend the deadline described under clause (i) at
the request of the applicant, but may not extend the
deadline more than 30 days past the deadline described
under clause (i).''.
(b) Savings and Loan Holding Companies.--Section 10(e) of the Home
Owners' Loan Act (12 U.S.C. 1467a(e)) is amended--
(1) in paragraph (2), by striking ``, and shall render a
decision within 90 days after submission to the Board of the
complete record on the application'';
(2) by redesignating paragraph (7) as paragraph (9); and
(3) by inserting after paragraph (6) the following:
``(7) Complete record on an application.--
``(A) Notice to applicant.--Not later than 30 days
after the date on which the Board receives an
application for approval under this subsection, the
Board shall transmit to the applicant a letter that
either--
``(i) confirms the record on the
application is complete; or
``(ii) details all additional information
that is required for the record on that
application to be complete.
``(B) Extension of notice.--Notwithstanding
subparagraph (A), the Board may, if an application is
unusually complex, extend the 30-day period described
under subparagraph (A) for an additional 30 days.
``(C) Receipt of response; deeming of complete
record.--Upon receipt of a response from an applicant
to a notice requesting additional information described
under subparagraph (A)(ii), the record on the
application shall be deemed complete unless the Board--
``(i) determines that the applicant's
response was materially deficient; and
``(ii) not later than 30 days after the
date on which the Board received the response,
provides the applicant a detailed notice
describing the deficiencies.
``(D) Treatment of third-party information.--In
determining whether the record on an application is
complete, the Board may take into account only
information provided by the applicant, and may not base
the determination of completeness on any information
(including reports, views, or recommendations) provided
by third parties.
``(8) Deadline for determination.--
``(A) In general.--Notwithstanding any other
provision of this subsection, the Board shall grant or
deny an application submitted under this subsection not
later than 90 days after the date on which the
application was initially submitted to the Board,
regardless of whether the record on such initial
application was complete.
``(B) Failure to make a determination.--If the
Board does not grant or deny an application within the
time period described under subparagraph (A), such
application shall be deemed to have been granted.
``(C) Tolling of period.--The Board may at any time
extend the deadline described under subparagraph (A) at
the request of the applicant, but may not extend the
deadline more than 30 days past the deadline described
under subparagraph (A).''.
(c) Insured Depository Institutions.--Section 18(c) of the Federal
Deposit Insurance Act (12 U.S.C. 1828(c)) is amended by adding at the
end the following:
``(14) Complete Record on an Application.--
``(A) Notice to applicant.--Not later than 30 days after
the date on which the responsible agency receives a merger
application for approval under this subsection, the responsible
agency shall transmit to the applicant a letter that either--
``(i) confirms the record on the application is
complete; or
``(ii) details all additional information that is
required for the record on that application to be
complete.
``(B) Extension of notice.--Notwithstanding subparagraph
(A), the responsible agency may, if an application is unusually
complex, extend the 30-day period described under subparagraph
(A) for an additional 30 days.
``(C) Receipt of response; deeming of complete record.--
Upon receipt of a response from an applicant to a notice
requesting additional information described under subparagraph
(A)(ii), the record on the application shall be deemed complete
unless the responsible agency--
``(i) determines that the applicant's response was
materially deficient; and
``(ii) not later than 30 days after the date on
which the responsible agency received the response,
provides the applicant a detailed notice describing the
deficiencies.
``(D) Treatment of third-party information.--In determining
whether the record on an application is complete, the
responsible agency may take into account only information
provided by the applicant, and may not base the determination
of completeness on any information (including reports, views,
or recommendations) provided by third parties.
``(15) Deadline for Determination.--
``(A) In general.--Notwithstanding any other provision of
this subsection, the responsible agency shall grant or deny a
merger application submitted under this subsection not later
than 90 days after the date on which the application was
initially submitted to the responsible agency, regardless of
whether the record on such initial application was complete.
``(B) Failure to make a determination.--If the responsible
agency does not grant or deny an application within the time
period described under subparagraph (A), such application shall
be deemed to have been granted.
``(C) Tolling of period.--The responsible agency may at any
time extend the deadline described under subparagraph (A) at
the request of the applicant, but may not extend the deadline
more than 30 days past the deadline described under
subparagraph (A).''.
TITLE III--STRESS TESTING ACCOUNTABILITY AND TRANSPARENCY
SEC. 301. 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 title 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.
SEC. 302. 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 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.
SEC. 303. 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;
(B) the stability of the United States financial
system.
TITLE IV--BANK SUPERVISION APPEALS IMPROVEMENT
SEC. 401. TIMELINESS OF EXAMINATIONS AND REQUIRED PERMISSION,
REGULATORY, AND REPORTING GUIDANCE.
(a) Exit Interview Requirement; Timeliness of Examinations.--
(1) Insured depository institutions.--Section 10(d) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by
adding at the end the following:
``(11) Examination timeliness.--The appropriate Federal
banking agency shall complete any examination of an insured
depository institution within 270 days of commencing the
examination, except that such period may be extended by the
appropriate Federal banking agency by providing written notice
to the insured depository institution describing with
particularity the reasons that a longer period is needed.
``(12) Exit interview requirement.--Within 30 days of
completing an examination, the appropriate Federal banking
agency shall conduct an exit interview with the insured
depository institution's senior management and board of
directors.
``(13) Timeliness of examination reports.--
``(A) Final examination report.--With respect to an
examination of an insured depository institution by an
appropriate Federal banking agency, the appropriate
Federal banking agency shall provide a final
examination report to the insured depository
institution not later than 60 days after the later of--
``(i) the exit interview for the
examination; or
``(ii) the provision of additional
information by the insured depository
institution relating to the examination.
``(B) Examination materials.--Upon the request of
an insured depository institution, the appropriate
Federal banking agency shall include with a final
examination report an appendix listing all materials
relied upon by the agency in support of all material
supervisory determinations.
``(C) Material supervisory determination defined.--
In this paragraph, the term `material supervisory
determination' has the meaning given such term in
section 309(i) of the Riegle Community Development and
Regulatory Improvement Act of 1994.''.
(2) Insured credit unions.--Section 204 of the Federal
Credit Union Act (12 U.S.C. 1784) is amended by adding at the
end the following:
``(h) Exit Interview Requirement; Timeliness of Examinations.--
``(1) Examination timeliness.--The Board shall complete any
examination of an insured credit union within 270 days of
commencing the examination, except that such period may be
extended by the Board by providing written notice to the
insured credit union describing with particularity the reasons
t