I 

115TH CONGRESS 

1ST SESSION H. R. 4293 

To reform the Comprehensive Capital Analysis and Review process, the DoddFrank Act Stress Test process, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 7, 2017 

Mr. ZELDIN introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To reform the Comprehensive Capital Analysis and Review 

process, the Dodd-Frank Act Stress Test process, and 

for other purposes. 

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 ‘‘Stress Test Improve5 ment Act of 2017’’. 

6 SEC. 2. CCAR AND DFAST REFORMS. 

7 Section 165(i) of the Dodd-Frank Wall Street Re8 form and Consumer Protection Act (12 U.S.C. 5365(i)) 

9 is amended— 

10 (1) in paragraph (1)— 


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1 (A) in subparagraph (B)— 

2 (i) by amending clause (i) to read as 

3 follows: 

4 ‘‘(i) shall— 

5 ‘‘(I) issue regulations, after pro6 viding for public notice and comment, 

7 that provide for at least 3 different 

8 sets of conditions under which the 

9 evaluation required by this subsection 

10 shall be conducted, including baseline, 

11 adverse, and severely adverse, and 

12 methodologies, including models used 

13 to estimate losses on certain assets, 

14 and the Board of Governors shall not 

15 carry out any such evaluation until 60 

16 days after such regulations are issued; 

17 and 

18 ‘‘(II) provide copies of such regu19 lations to the Comptroller General of 

20 the United States and the Panel of 

21 Economic Advisors of the Congres22 sional Budget Office before publishing 

23 such regulations;’’; 

24 (ii) in clause (iv), by striking ‘‘and’’ at 

25 the end; 


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1 (iii) in clause (v), by striking the pe2 riod and inserting the following: ‘‘, includ3 ing any results of a resubmitted test;’’; and 

4 (iv) by adding at the end the fol5 lowing: 

6 ‘‘(vi) shall, in establishing the severely 

7 adverse condition under clause (i), provide 

8 detailed consideration of the model’s ef9 fects on financial stability and the cost and 

10 availability of credit; 

11 ‘‘(vii) shall, in developing the models 

12 and methodologies and providing them for 

13 notice and comment under this subpara14 graph, publish a process to test the models 

15 and methodologies for their potential to 

16 magnify systemic and institutional risks in17 stead of facilitating increased resiliency; 

18 ‘‘(viii) shall design and publish a proc19 ess to test and document the sensitivity 

20 and uncertainty associated with the model 

21 system’s data quality, specifications, and 

22 assumptions; and 

23 ‘‘(ix) shall communicate the range and 

24 sources of uncertainty surrounding the 

25 models and methodologies.’’; and 


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1 (B) by adding at the end the following: 

2 ‘‘(C) CCAR REQUIREMENTS.— 

3 ‘‘(i) PARAMETERS AND CON4 SEQUENCES APPLICABLE TO CCAR.—The 

5 requirements of subparagraph (B) shall 

6 apply to CCAR. 

7 ‘‘(ii) TWO-YEAR LIMITATION.—The 

8 Board of Governors may not subject a 

9 company to CCAR more than once every 

10 two years. 

11 ‘‘(iii) MID-CYCLE RESUBMISSION.—If 

12 a company receives a quantitative objection 

13 to, or otherwise desires to amend the com14 pany’s capital plan, the company may file 

15 a new streamlined plan at any time after 

16 a capital planning exercise has been com17 pleted and before a subsequent capital 

18 planning exercise. 

19 ‘‘(iv) LIMITATION ON QUALITATIVE

20 CAPITAL PLANNING OBJECTIONS.—In car21 rying out CCAR, the Board of Governors 

22 may not object to a company’s capital plan 

23 on the basis of qualitative deficiencies in 

24 the company’s capital planning process. 


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1 ‘‘(v) COMPANY INQUIRIES.—The 

2 Board of Governors shall establish and 

3 publish procedures for responding to in4 quiries from companies subject to CCAR, 

5 including establishing the time frame in 

6 which such responses will be made, and 

7 make such procedures publicly available. 

8 ‘‘(vi) CCAR DEFINED.—For purposes 

9 of this subparagraph and subparagraph 

10 (E), the term ‘CCAR’ means the Com11 prehensive Capital Analysis and Review es12 tablished by the Board of Governors.’’; and 

13 (2) in paragraph (2)(A), by striking ‘‘semi14 annual’’ and inserting ‘‘annual’’. 

Æ 


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