To establish a mechanism for developing uniform United States positions on issues before the Basel Committee on Banking Supervision at the Bank for International Settlements, to require a review on the most recent recommendation of the Basel Committee for an accord on capital standards, and for other purposes.

Summary: United States Financial Policy Committee For Fair Capital Standards Act - Establishes an inter-agency United States Financial Policy Committee to develop uniform U.S. positions on proposals made to, and issues before, the Basel Committee on Banking Supervision that, if implemented, may directly or indirectly affect U.S. financial institutions.

Prohibits any Federal banking agency from agreeing to any proposed recommendation of the Basel Committee before the agency reports on it to the Congress.

Requires such agencies, before reporting to Congress with respect to the New Basel Capital Accord, as revised through the Third Consultative Paper published on April 29, 2003, or any subsequent revisions or final agreement, to evaluate its impact, taking specified factors into account.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States Financial Policy 
Committee For Fair Capital Standards Act''.

SEC. 2. UNITED STATES FINANCIAL POLICY COMMITTEE.

    (a) Establishment.--There is hereby established an inter-agency 
committee, to be known as the ``United States Financial Policy 
Committee'' (hereafter in this Act referred to as the ``Committee''), 
which shall consist of--
            (1) the Secretary of the Treasury, who shall serve as the 
        Chairperson of the Committee;
            (2) the Chairman of the Board of Governors of the Federal 
        Reserve System;
            (3) the Comptroller of the Currency; and
            (4) the Chairperson of the Federal Deposit Insurance 
        Corporation.
    (b) Purpose.--The purpose of the Committee is to develop uniform 
United States positions on proposals made to, and issues before, the 
Basel Committee on Banking Supervision that, if implemented, may 
directly or indirectly affect United States financial institutions.
    (c) Meetings.--The Committee shall meet before any meeting of the 
Basel Committee on Banking Supervision and any other time the 
Chairperson or any member of the Committee calls for a meeting.
    (d) Adherence to Committee Position.--
            (1) In general.--Each member of the Committee that is a 
        participant on the Basel Committee on Banking Supervision shall 
        adhere to the positions of the Committee in any negotiations of 
        the Basel Committee on Banking Supervision.
            (2) Lack of uniform position.--If the members of the 
        Committee that are participants on the Basel Committee on 
        Banking Supervision are unable to agree on a uniform position 
        on an issue, the position of the Secretary of the Treasury 
        shall be determinative for purposes of paragraph (1) with 
        respect to such issue.
    (e) Reports to the Congress.--
            (1) Annual report.--
                    (A) In general.--The Committee shall submit an 
                annual report to the Congress on the proceedings of the 
                Committee during the period covered by the report.
                    (B) Contents of report.--The report shall include--
                            (i) a brief description of issues that were 
                        addressed by the Committee;
                            (ii) a brief description of the uniform 
                        positions developed by the Committee with 
                        respect to such issues; and
                            (iii) in the case of any issue for which a 
                        uniform policy was not agreed to, a brief 
                        description of the positions of the parties to 
                        the disagreement and an explanation of the 
                        reasons why the parties could not reach an 
                        agreement.
            (2) Reports to the congress prior to agreement on any basel 
        accord.--
                    (A) In general.--No Federal banking agency (as 
                defined in section 3(z) of the Federal Deposit 
                Insurance Act) may agree to any proposed recommendation 
                of the Basel Committee on Banking Supervision before 
                the agency submits a report on the proposed 
                recommendation to the Congress.
                    (B) Consultations.--The head of any Federal banking 
                agency that submits a report to the Congress under 
                subparagraph (A) shall consult with the Congress 
                concerning the proposal.
            (3) Evaluation of new basel capital accord before report.--
        Before submitting a report to the Congress under paragraph (2) 
        with respect to the New Basel Capital Accord, as revised 
        through the Third Consultative Paper published on April 29, 
        2003, or any subsequent revisions or final agreement, the 
        Federal banking agencies (as defined in section 3(z) of the 
        Federal Deposit Insurance Act), in consultation with the 
        Secretary of the Treasury, shall evaluate the impact of the 
        revised Capital Accord, taking into account the following 
        factors, and shall include such evaluation in the report:
                    (A) The cost and complexity of the proposal.
                    (B) The impact of the proposal on small, medium, 
                and large financial institutions.
                    (C) The impact of the proposal on real estate 
                markets.
                    (D) The effect of an operational risk capital 
                standard on the resilience of the Nation's financial 
                system and competition.
                    (E) The impact of the proposal on competition 
                between banks and other financial institutions.
                    (F) The need for additional training for 
                supervision and examination personnel.
                    (G) Any comments filed by the public after notice 
                and an opportunity to comment for a period of not less 
                than 60 days.
                    (H) The relative impact of compliance by domestic 
                banks.
    (f) Administrative Support Services.--Each agency represented on 
the Committee shall provide such administrative support services as may 
be necessary for the Committee to carry out its responsibilities under 
this Act.