Pension, Endowment, and Mutual Fund Access to Banking Act

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. Short title This Act may be cited as the Pension, Endowment, and Mutual Fund Access to Banking Act 2. Treatment of funds deposited with a central bank in calculating the applicable supplementary leverage ratio (a) In general The funds of a custody bank that are deposited with a central bank shall not be taken into account when calculating the applicable supplementary leverage ratio for the custody bank. (b) Limitations (1) Amounts The amount of funds described under subsection (a) shall be limited to— (A) the total value of deposits of the custody bank linked to fiduciary or custodial and safekeeping accounts; or (B) an amount that is greater than a percentage specified by the appropriate Federal banking agency of the total leverage exposure of the custody bank, based on considerations such as the potential impact on the safety and soundness of the custody bank and the ability of the custody bank to continue to accept cash deposits from customers that are linked to fiduciary or custodial and safekeeping accounts. (2) High-quality central bank requirements Subsection (a) only applies to central banks that are high-quality central banks, including— (A) the Federal Reserve System; (B) the European Central Bank; and (C) central banks of member countries of the Organisation for Economic Co-operation and Development, if— (i) the central bank of such member country has been assigned a zero percent risk weight under the final rules titled Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition Provisions, Prompt Corrective Action, Standardized Approach for Risk-weighted Assets, Market Discipline and Disclosure Requirements, Advanced Approaches Risk-Based Capital Rule, and Market Risk Capital Rule (ii) the sovereign debt of such member country is not in default or has not been in default during the previous five years. (c) Regulations Not later than 60 days after the date of the enactment of this Act, the appropriate Federal banking agencies shall revise applicable regulations to carry out this Act. (d) Definitions For purposes of this section: (1) Appropriate Federal banking agency The term appropriate Federal banking agency 12 U.S.C. 1813 (2) Custody bank The term custody bank (3) Depository institution holding company The term depository institution holding company 12 U.S.C. 1813 (4) Insured depository institution The term insured depository institution 12 U.S.C. 1813 (5) Supplementary leverage ratio The term supplementary leverage ratio 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. 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

Summary: Pension, Endowment, and Mutual Fund Access to Banking Act This bill excludes, for purposes of calculating a custodial bank's supplementary leverage ratio, funds of a custodial bank that are deposited with certain central banks. ("Supplementary leverage ratio" is a capital adequacy measure that refers to the ratio of a banking organization's tier-one capital to its leverage exposure.) The amount of such funds shall be limited, as specified by the bill.