IB 

Union Calendar No. 434 

115TH CONGRESS 

2D SESSION H. R. 4296 

[Report No. 115–574] 

To place requirements on operational risk capital requirements for banking 

organizations established by an appropriate Federal banking agency. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 8, 2017 

Mr. LUETKEMEYER (for himself and Mr. MEEKS) introduced the following bill; 

which was referred to the Committee on Financial Services 

FEBRUARY 23, 2018 

Additional sponsor: Mr. SESSIONS

FEBRUARY 23, 2018 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on November 8, 2017] 


rfrederick on DSKBCBPHB2PROD with BILLS
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•HR 4296 RH

A BILL 

To place requirements on operational risk capital requirements for banking organizations established by an appropriate Federal banking agency. 


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•HR 4296 RH

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

3 SECTION 1. OPERATIONAL RISK CAPITAL REQUIREMENTS 

4 FOR BANKING ORGANIZATIONS. 

5 (a) IN GENERAL.—An appropriate Federal banking 

6 agency may not establish an operational risk capital re7 quirement for banking organizations, unless such require8 ment— 

9 (1) is based primarily on the risks posed by a 

10 banking organization’s current activities and busi11 nesses; 

12 (2) is appropriately sensitive to the risks posed 

13 by such current activities and businesses; 

14 (3) is determined under a forward-looking assess15 ment of potential losses that may arise out of a bank16 ing organization’s current activities, businesses, and 

17 exposures, which is not solely based on a banking or18 ganization’s historical losses; and 

19 (4) permits adjustments based on qualifying 

20 operational risk mitigants. 

21 (b) DEFINITIONS.—For purposes of this section: 

22 (1) APPROPRIATE FEDERAL BANKING AGENCY.— 

23 The term ‘‘appropriate Federal banking agency’’— 


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•HR 4296 RH

1 (A) has the meaning given such term under 

2 section 3 of the Federal Deposit Insurance Act; 

3 and 

4 (B) means the National Credit Union Ad5 ministration, in the case of an insured credit 

6 union. 

7 (2) BANKING ORGANIZATION.—The term ‘‘bank8 ing organization’’ means— 

9 (A) an insured depository institution (as 

10 defined under section 3 of the Federal Deposit 

11 Insurance Act); 

12 (B) an insured credit union (as defined 

13 under section 101 of the Federal Credit Union 

14 Act); 

15 (C) a depository institution holding com16 pany (as defined under section 3 of the Federal 

17 Deposit Insurance Act); 

18 (D) a company that is treated as a bank 

19 holding company for purposes of section 8 of the 

20 International Banking Act; and 

21 (E) a U.S. intermediate holding company 

22 established by a foreign banking organization 

23 pursuant to section 252.153 of title 12, Code of 

24 Federal Regulations. 


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rfrederick on DSKBCBPHB2PROD with BILLS
Union Calendar No. 434 

115TH CONGRESS 

2D SESSION H. R. 4296 

[Report No. 115–574] 

A BILL 

To place requirements on operational risk capital 

lished by an appropriate Federal banking agency. requirements for banking organizations estabFEBRUARY 23, 2018 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


rfrederick on DSKBCBPHB2PROD with BILLS