Stabilizing Vulnerable Banks Act

Subjects: Finance and Financial Sector

Summary:  <p><b>Stabilizing Vulnerable Banks Act </b></p> <p>This bill increases the oversight of certain nonbank financial companies and bank holding companies by repealing Title IV of the Economic Growth, Regulatory Relief, and Consumer Protection Act (P.L. 115-174). (A nonbank financial company is a financial institution without a banking license that may be subject to supervision due to the company's size or risk profile. A bank holding company owns a controlling interest in one or more banks.)</p> <p>Specifically, the bill decreases from $250 billion to $50 billion the asset threshold at which enhanced prudential standards become mandatory, thereby requiring more companies to comply with these standards. These standards include stress testing, leverage limits, liquidity requirements, and resolution plan requirements (i.e., living will requirements). Under current law, the Federal Reserve has the discretion to determine the applicability of these standards to bank holding companies with assets between $100 billion and $250 billion.</p> <p>The bill also expands stress testing by </p> <ul> <li>increasing the number of board-run stress test scenarios from two to three; </li> <li>decreasing the asset threshold at which company-run stress tests are required from $250 billion to $10 billion; and </li> <li>requiring company-run stress tests to be performed annually or semiannually, depending on the amount of assets held.</li> </ul> <p>The bill also decreases from $50 billion to $10 billion the asset threshold for mandatory risk committees.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1596 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 1596

     To amend the Economic Growth, Regulatory Relief, and Consumer 
 Protection Act to repeal the exemption from enhanced supervision and 
 prudential standards applicable to bank holding companies with total 
   consolidated assets between $50,000,000,000 and $250,000,000,000.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 14, 2023

 Mr. Moulton introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
     To amend the Economic Growth, Regulatory Relief, and Consumer 
 Protection Act to repeal the exemption from enhanced supervision and 
 prudential standards applicable to bank holding companies with total 
   consolidated assets between $50,000,000,000 and $250,000,000,000.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stabilizing Vulnerable Banks Act''.

SEC. 2. ENHANCED SUPERVISION AND PRUDENTIAL STANDARDS FOR CERTAIN BANK 
              HOLDING COMPANIES.

    (a) In General.--Section 401 of the Economic Growth, Regulatory 
Relief, and Consumer Protection Act (Public Law 115-174) is hereby 
repealed and the provisions of law amended by such section are revived 
or restored as if such section had not been enacted.
    (b) Clerical Amendment.--The table of contents for the Economic 
Growth, Regulatory Relief, and Consumer Protection Act is amended by 
striking the item relating to section 401.
                                 &lt;all&gt;
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