I 

113TH CONGRESS 

1ST SESSION H. R. 2547 

To determine appropriate risk based capital requirements for community, 

mid-size, and regional institutions. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 27, 2013 

Mrs. CAPITO (for herself and Mr. MEEKS) introduced the following bill; which 

was referred to the Committee on Financial Services 

A BILL 

To determine appropriate risk based capital requirements 

for community, mid-size, and regional institutions. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Determination of Ap5 propriate Risk-Based Capital Requirements for Commu6 nity Financial Institutions Act of 2013’’. 

7 SEC. 2. FINAL RULES PENDING IMPACT STUDY. 

8 (a) IN GENERAL.—The Board of Governors of the 

9 Federal Reserve System, the Federal Deposit Insurance 

10 Corporation, and the Office of the Comptroller of the CurVerDate Mar 15 2010 04:32 Jul 03, 2013 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2547.IH H2547

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1 rency (in this Act collectively referred to as the ‘‘Federal 

2 banking agencies’’) shall conduct an empirical study in ac3 cordance with subsection (b) prior to issuing any final rule 

4 in relation to all proposed regulatory capital rules issued 

5 by the Federal banking agencies for the international 

6 Basel III agreement (‘‘Basel III Rules’’). 

7 (b) ISSUES TO BE STUDIED.—The study required by 

8 this section shall include— 

9 (1) the potential impact of the Basel III Rules 

10 on the financial services sector of the United States, 

11 and specifically community, mid-size, and regional fi12 nancial institutions, including changes to required 

13 capital levels in the aggregate, per asset class and 

14 institution size; 

15 (2) the long-term potential impact of the Basel 

16 III Rules, including changes to the current risk17 weight framework; 

18 (3) the cost and complexity of the Basel III 

19 Rules for community financial institutions; 

20 (4) the potential indicators of community banks 

21 having to maintain higher leverage capital ratios and 

22 higher total risk-based capital ratios than non-com23 munity banks, and if such capital levels are commen24 surate with higher historical losses or greater risk; 


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1 (5) the historical probability of default and loss 

2 given default of residential mortgage loans and the 

3 proposed risk weightings in the Basel III Rules, and 

4 whether such proposed risk weightings are appro5 priately and fairly calibrated, specifically for commu6 nity, mid-size, and regional financial institutions; 

7 and 

8 (6) the impact of the Basel III Rules on real 

9 estate markets, and specifically, residential mortgage 

10 lending and home equity lines of credit. 

11 (c) EXCEPTION FOR GLOBAL SYSTEMICALLY IMPOR12 TANT BANKS.—The delay in rulemaking required under 

13 subsection (a) shall not apply to rules applicable to global 

14 systemically important banks, as identified by the Finan15 cial Stability Board. 

16 SEC. 3. VOLUNTARY PARTICIPATION. 

17 Any financial institution may voluntarily provide in18 formation for the study upon the request of the agencies, 

19 but may not be required to provide such information. 

20 SEC. 4. FINAL REPORT. 

21 (a) AVAILABILITY TO THE PUBLIC.—A final report 

22 on the completed study required by this Act shall be made 

23 available to the public for notice and comment for a period 

24 of not less than 90 days. 


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1 (b) REPORT TO CONGRESS.—The Federal banking 

2 agencies shall issue a report to the Committee on Banking, 

3 Housing, and Urban Affairs of the Senate and the Com4 mittee on Financial Services of the House of Representa5 tives, and testify before such committees, on the results 

6 of the study required by this Act and a summary of the 

7 comments received under subsection (a). 

8 (c) REVIEW.—The Federal banking agencies shall re9 view any comments submitted under subsections (a) and 

10 (b) and considerations provided pursuant to subsections 

11 (a) and (b), and following such review, shall prescribe new 

12 rules, if appropriate, based on the results of the study and 

13 such comments and considerations. Notwithstanding any 

14 other provision of law, a new rulemaking following such 

15 comment period shall include an additional comment pe16 riod of not less than 90 days. 

17 SEC. 5. DELAY OF RULEMAKING. 

18 A regulation issued by the Federal banking agencies 

19 to implement the International Basel III agreement on 

20 general risk-based capital requirements may not take ef21 fect until after the end of the 1-year period beginning on 

22 the date of the enactment of this Act. 

Æ 


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