TAILOR Act of 2016

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Taking Account of Institutions with 
Low Operation Risk Act of 2016'' or the ``TAILOR Act of 2016''.

SEC. 2. TAILORING REGULATION TO BUSINESS MODEL AND RISK.

    (a) Definitions.--In this section--
            (1) the term ``Federal financial institutions regulatory 
        agencies'' means the Office of the Comptroller of the Currency, 
        the Board of Governors of the Federal Reserve System, the 
        Federal Deposit Insurance Corporation, the National Credit 
        Union Administration, and the Bureau of Consumer Financial 
        Protection; and
            (2) the term ``regulatory action''--
                    (A) means any proposed, interim, or final rule or 
                regulation, guidance, or published interpretation; and
                    (B) does not include any action taken by a Federal 
                financial institutions regulatory agency that is solely 
                applicable to an individual institution, including an 
                enforcement action or order.
    (b) Consideration and Tailoring.--For any regulatory action 
occurring after the date of enactment of this Act, each Federal 
financial institutions regulatory agency shall--
            (1) take into consideration the risk profile and business 
        models of individual institutions and those of similar type 
        that are subject to the regulatory action; and
            (2) tailor such regulatory action applicable to such 
        institution, or type of institution, in a manner that limits 
        the regulatory impact, including cost, human resource 
        allocation and other burdens, on such institution or type of 
        institution as is appropriate for the risk profile and business 
        model involved.
    (c) Factors To Consider.--In carrying out the requirements of 
subsection (b) (and including consideration of the requirements of 
paragraph (1) of that subsection), each Federal financial institutions 
regulatory agency shall consider--
            (1) whether it is necessary to apply such regulatory action 
        to individual institutions or those of similar type in order to 
        accomplish the underlying public policy objectives of the 
        statutory provision involved;
            (2) the impact of such regulatory action on the ability of 
        such institutions to flexibly serve their customers and local 
        markets now and in the future;
            (3) the aggregate impact of all applicable regulatory 
        actions on the ability of such institutions to flexibly serve 
        such customers and local markets, both now and in the future;
            (4) the potential impact that efforts to implement the 
        regulatory action, including through the use of examination 
        manuals, third-party service provider actions, or other 
        factors, may work to undercut efforts to tailor such regulatory 
        action described in subsection (b)(2); and
            (5) the statutory provision authorizing the regulatory 
        action, the congressional intent with respect to the statutory 
        provision, and the policy objectives sought by the Federal 
        financial regulatory agency in implementing that statutory 
        provision.
    (d) Notice of Proposed and Final Rulemaking.--Each Federal 
financial institutions regulatory agency shall disclose and document in 
every notice of proposed rulemaking and in any final rulemaking for a 
regulatory action how the agency has applied subsections (b) and (c).
    (e) Reports to Congress.--
            (1) Individual agency reports.--Not later than 1 year after 
        the date of enactment of this Act and annually thereafter, each 
        Federal financial institutions regulatory agency shall submit 
        to the Committee on Financial Services of the House of 
        Representatives and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate a report on the specific actions 
        taken to tailor the regulatory actions of the Federal financial 
        institutions regulator agency pursuant to the requirements of 
        this section.
            (2) FFIEC reports.--Not later than 3 months after each 
        report is submitted under paragraph (1), the Federal Financial 
        Institutions Examination Council shall submit to the Committee 
        on Financial Services of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        a report on--
                    (A) the extent to which each Federal financial 
                institutions regulatory agency differs in the treatment 
                of similarly situated institutions of different charter 
                type; and
                    (B) an explanation for such differential treatment.
    (f) Limited Look-Back Application.--
            (1) In general.--Each Federal financial institutions 
        regulatory agency shall--
                    (A) conduct a review of all regulations issued in 
                final form pursuant to statutes enacted during the 
                period beginning on or after July 21, 2010, and ending 
                on the date of the enactment of this Act; and
                    (B) apply the requirements of this section to such 
                regulations.
            (2) Revision.--Any regulation revised under paragraph (1) 
        shall be revised not later than 3 years after the date of 
        enactment of this Act.

Summary: Taking Account of Institutions with Low Operation Risk Act of 2016 or the TAILOR Act of 2016 This bill requires the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Consumer Financial Protection Bureau, for any rule, regulation, or guidance, to: (1) consider the risk profile and business models of individual financial institutions and those of similar type that are subject to the regulatory action. And (2) tailor the action so that it limits the regulatory impact on an individual or type of institution as is appropriate for the risk profile and business model involved. In carrying out such requirements, each such agency shall consider: whether it is necessary to apply such regulatory action to accomplish policy objectives. The impact of such action on the ability of such institutions to flexibly serve their customers and local markets. The aggregate impact of all applicable regulatory actions on such ability. The potential impact of implementing the action upon efforts to tailor it. And the statutory provision authorizing the action, the congressional intent of such provision, and the policy objectives sought by the agency in implementing it. The bill requires: (1) each such agency to report on the specific actions taken to tailor its regulatory actions pursuant to this bill, and (2) the Federal Financial Institutions Examination Council to report on the extent to which each such agency differs in the treatment of similarly situated institutions. Each agency shall: (1) conduct a review of all final regulations issued pursuant to statutes enacted between July 21, 2010, and the date of this bill's enactment, and (2) apply this bill's requirements to such regulations.