I 

115TH CONGRESS 

1ST SESSION H. R. 2121 

To require the appropriate Federal banking agencies to revise regulations 

to specify that certain funds shall not be taken into account when 

calculating any supplementary leverage ratio for custodial banks, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 25, 2017 

Mr. ROTHFUS (for himself, Mr. FOSTER, and Mr. HULTGREN) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To require the appropriate Federal banking agencies to revise 

regulations to specify that certain funds shall not be 

taken into account when calculating any supplementary 

leverage ratio for custodial banks, 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 ‘‘Pension, Endowment, 

5 and Mutual Fund Access to Banking Act’’. 


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1 SEC. 2. TREATMENT OF FUNDS DEPOSITED WITH A CEN2 TRAL BANK IN CALCULATING THE APPLICA3 BLE SUPPLEMENTARY LEVERAGE RATIO. 

4 (a) IN GENERAL.—The appropriate Federal banking 

5 agencies shall amend the relevant sections of title 12, Code 

6 of Federal Regulations, to specify that funds of a custodial 

7 bank that are deposited with a central bank shall not be 

8 taken into account when calculating the applicable supple9 mentary leverage ratio for the custodial bank under such 

10 regulations. 

11 (b) LIMITATION.—The amount of funds described 

12 under subsection (a) may not exceed the total value of de13 posits of the custodial bank linked to fiduciary or custodial 

14 and safekeeping accounts. 

15 (c) ADDITIONAL CONSIDERATIONS.—The amount of 

16 funds described under subsection (a) may be limited to— 

17 (1) an amount that is greater than a percent18 age specified by the appropriate Federal banking 

19 agency of the total leverage exposure of the custodial 

20 bank, based on considerations such as the potential 

21 impact on the safety and soundness of the custodial 

22 bank and the ability of the custodial bank to con23 tinue to accept cash deposits from customers that 

24 are linked to fiduciary or custodial and safekeeping 

25 accounts; and 


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1 (2) amounts deposited with certain central 

2 banks, as determined through rulemaking by the ap3 propriate Federal banking agencies. 

4 (d) DEFINITIONS.—For purposes of this section: 

5 (1) APPROPRIATE FEDERAL BANKING AGEN6 CY.—The term ‘‘appropriate Federal banking agen7 cy’’ has the meaning given that term under section 

8 3 of the Federal Deposit Insurance Act (12 U.S.C. 

9 1813). 

10 (2) CUSTODIAL BANK.— 

11 (A) IN GENERAL.—The term ‘‘custodial 

12 bank’’ means a depository institution and the 

13 depository institution holding company of such 

14 depository institution, both of which are pri15 marily engaged in custodial banking. 

16 (B) CUSTODIAL BANKING DEFINED.—For 

17 purposes of this paragraph, the appropriate 

18 Federal banking agencies may define the term 

19 ‘‘custodial banking’’ based on factors including 

20 the percentage of total revenues generated by 

21 custodial businesses and the level of assets 

22 under custody. 

23 (3) DEPOSITORY INSTITUTION.—The term ‘‘de24 pository institution’’ has the meaning given that 


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1 term under section 3 of the Federal Deposit Insur2 ance Act (12 U.S.C. 1813). 

3 (4) DEPOSITORY INSTITUTION HOLDING COM4 PANY.—The term ‘‘depository institution holding 

5 company’’ has the meaning given that term under 

6 section 3 of the Federal Deposit Insurance Act (12 

7 U.S.C. 1813). 

8 (5) SUPPLEMENTARY LEVERAGE RATIO.—The 

9 term ‘‘supplementary leverage ratio’’ means the sup10 plementary leverage ratio, including applicable buff11 ers, surcharges, and well-capitalized requirements 

12 relating to such supplementary leverage ratio, as de13 fined by regulation of the appropriate Federal bank14 ing agency in title 12, Code of Federal Regulations. 

Æ 


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