IB 

Union Calendar No. 504 

115TH CONGRESS 

2D SESSION H. R. 2121 

[Report No. 115–656] 

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 

APRIL 26, 2018 

Additional sponsors: Mr. LOUDERMILK, Mr. CAPUANO, Mr. MEEKS, Mr. 

BARR, Ms. SINEMA, Ms. VELA ́ZQUEZ, Mr. GOTTHEIMER, Mr. LYNCH, Mr. 

ZELDIN, Mr. LUETKEMEYER, Mr. ROSS, Ms. MOORE, Mr. HIMES, Mr. 

HILL, Mr. HUIZENGA, Mr. ROYCE of California, Mr. TIPTON, Mr. BUDD, 

Mr. PITTENGER, Mr. EMMER, Mr. STIVERS, Mr. MCGOVERN, Mr. DONOVAN, Ms. CLARK of Massachusetts, Mr. MACARTHUR, Mrs. CAROLYN B. 

MALONEY of New York, Mr. MOONEY of West Virginia, Mr. POLIQUIN, 

Mr. BANKS of Indiana, Ms. TENNEY, Mr. POSEY, Mr. BYRNE, Mr. 

MESSER, Mr. MOULTON, Mr. LOEBSACK, and Mrs. WAGNER

APRIL 26, 2018 

Reported with amendments, 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 April 25, 2017] 


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•HR 2121 RH

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. 


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•HR 2121 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Pension, Endowment, 

5 and Mutual Fund Access to Banking Act’’. 

6 SEC. 2. TREATMENT OF FUNDS DEPOSITED WITH A CEN7 TRAL BANK IN CALCULATING THE APPLICA8 BLE SUPPLEMENTARY LEVERAGE RATIO. 

9 (a) IN GENERAL.—The funds of a custody bank that 

10 are deposited with a central bank shall not be taken into 

11 account when calculating the applicable supplementary le12 verage ratio for the custody bank. 

13 (b) LIMITATIONS.— 

14 (1) AMOUNTS.—The amount of funds described 

15 under subsection (a) shall be limited to— 

16 (A) the total value of deposits of the custody 

17 bank linked to fiduciary or custodial and safe18 keeping accounts; or 

19 (B) an amount that is greater than a per20 centage specified by the appropriate Federal 

21 banking agency of the total leverage exposure of 

22 the custody bank, based on considerations such 

23 as the potential impact on the safety and sound24 ness of the custody bank and the ability of the 

25 custody bank to continue to accept cash deposits 


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1 from customers that are linked to fiduciary or 

2 custodial and safekeeping accounts. 

3 (2) HIGH-QUALITY CENTRAL BANK REQUIRE4 MENTS.—Subsection (a) only applies to central banks 

5 that are high-quality central banks, including— 

6 (A) the Federal Reserve System; 

7 (B) the European Central Bank; and 

8 (C) central banks of member countries of the 

9 Organisation for Economic Co-operation and 

10 Development, if— 

11 (i) the central bank of such member 

12 country has been assigned a zero percent 

13 risk weight under the final rules titled 

14 ‘‘Regulatory Capital Rules: Regulatory 

15 Capital, Implementation of Basel III, Cap16 ital Adequacy, Transition Provisions, 

17 Prompt Corrective Action, Standardized 

18 Approach for Risk-weighted Assets, Market 

19 Discipline and Disclosure Requirements, 

20 Advanced Approaches Risk-Based Capital 

21 Rule, and Market Risk Capital Rule’’ (78 

22 Fed. Reg. 62018; published Oct. 11, 2013, 

23 and 79 Fed. Reg. 20754; published April 

24 14, 2014); and 


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1 (ii) the sovereign debt of such member 

2 country is not in default or has not been in 

3 default during the previous five years. 

4 (c) REGULATIONS.—Not later than 60 days after the 

5 date of the enactment of this Act, the appropriate Federal 

6 banking agencies shall revise applicable regulations to carry 

7 out this Act. 

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

9 (1) APPROPRIATE FEDERAL BANKING AGENCY.— 

10 The term ‘‘appropriate Federal banking agency’’ has 

11 the meaning given that term under section 3 of the 

12 Federal Deposit Insurance Act (12 U.S.C. 1813). 

13 (2) CUSTODY BANK.—The term ‘‘custody bank’’ 

14 means a depository institution holding company pre15 dominantly engaged in custody, safekeeping, and 

16 asset servicing activities, including any insured de17 pository institution subsidiary of such a holding com18 pany. 

19 (3) DEPOSITORY INSTITUTION HOLDING COM20 PANY.—The term ‘‘depository institution holding com21 pany’’ has the meaning given that term under section 

22 3 of the Federal Deposit Insurance Act (12 U.S.C. 

23 1813). 

24 (4) INSURED DEPOSITORY INSTITUTION.—The 

25 term ‘‘insured depository institution’’ has the meanVerDate Sep 11 2014 20:41 Apr 26, 2018 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H2121.RH H2121

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1 ing given that term under section 3 of the Federal De2 posit Insurance Act (12 U.S.C. 1813). 

3 (5) SUPPLEMENTARY LEVERAGE RATIO.—The 

4 term ‘‘supplementary leverage ratio’’ means the sup5 plementary leverage ratio, including applicable buff6 ers, surcharges, and well-capitalized requirements re7 lating to such supplementary leverage ratio, as de8 fined by regulation of the appropriate Federal bank9 ing agency in title 12, Code of Federal Regulations, 

10 as in effect on October 1, 2017. 

Amend the title so as to read: ‘‘A bill to ensure that 

certain funds shall not be taken into account when calculating any supplementary leverage ratio for custody 

banks, and for other purposes.’’. 


sradovich on DSK3GMQ082PROD with BILLS

sradovich on DSK3GMQ082PROD with BILLS
Union Calendar No. 504 

115TH CONGRESS 

2D SESSION H. R. 2121 

[Report No. 115–656] 

A BILL 

To require the appropriate Federal banking agentodial banks, and for other purposes. lating any supplementary leverage ratio for cus- funds shall not be taken into account when calcu- cies to revise regulations to specify that certain 

APRIL 26, 2018 

Reported with amendments, committed to the Committee 

dered to be printed of the Whole House on the State of the Union, and orVerDate Sep 11 2014 20:41 Apr 26, 2018 Jkt 079200 PO 00000 Frm 00008 Fmt 6651 Sfmt 6651 E:\BILLS\H2121.RH H2121

sradovich on DSK3GMQ082PROD with BILLS