Transparency and Accountability for Business Standards Act

To require the appropriate Federal banking agencies, when issuing certain prudential regulations that are substantively more stringent than a corresponding international prudential standard to publish the rationale for doing so and a cost-benefit analysis of the difference, and for other purposes. 1. Short title This Act may be cited as the Transparency and Accountability for Business Standards Act 2. Cost-benefit analysis requirement for certain prudential regulations (a) Rulemaking requirement An appropriate Federal banking agency may not adopt or otherwise establish a prudential regulation that is substantively more stringent than a corresponding international prudential standard unless the appropriate Federal banking agency publishes, for public notice and comment— (1) a description of the agency’s rationale for doing so; and (2) a comprehensive analysis of the costs and benefits of the difference between the prudential regulation and the corresponding international prudential standard, including— (A) any impact on the pricing and availability of credit in the aggregate and for specific types of borrowers; (B) any impact on liquidity in markets for financial instruments in the aggregate and for specific types of instruments; (C) any impact of doing so on the competitiveness of affected institutions; and (D) any impact on employment, economic growth, and the execution of monetary policy. (b) Requirements with respect to superseded prudential regulations An appropriate Federal banking agency may not adopt or otherwise establish a prudential regulation to implement an international standard that will result in a prudential regulation that is then in effect becoming a superseded prudential regulation, unless the appropriate Federal banking agency publishes for public notice and comment— (1) a proposal to repeal or amend the superseded prudential regulation, or applicable part thereof; or (2) if the appropriate Federal banking agency does not propose to repeal or amend the superseded prudential regulation, or applicable part thereof, a description of the agency’s rationale for not doing so, which shall include a comprehensive analysis of the incremental costs and benefits of the superseded prudential regulation after the adoption of the prudential regulation to implement an international standard. (c) Lookback requirement With respect to a final rule issued by an appropriate Federal banking agency on or after January 1, 2007, but before the date of the enactment of this Act that established a prudential regulation that is substantively more stringent than a corresponding international prudential standard, or that resulted in another prudential regulation becoming a superseded prudential regulation, each appropriate Federal banking agency shall, not later than the end of the 180-day period beginning on the date of the enactment of this Act, issue a report to the Congress (and make such report available on the website of the agency) with respect to such rule, containing the description and analysis described under paragraphs (1) and (2) of subsection (a) or paragraph (2) of subsection (b), as applicable. (d) Definitions For purposes of this section: (1) Appropriate Federal banking agency The term appropriate Federal banking agency (2) Banking organization The term banking organization (3) Corresponding international prudential standard The term corresponding international prudential standard (4) Prudential regulation The term prudential regulation (5) Prudential regulation to implement an international standard The term prudential regulation to implement an international standard (6) International prudential standard The term international prudential standard (7) Superseded prudential regulation The term superseded prudential regulation April 5, 2018 Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Summary: Transparency and Accountability for Business Standards Act This bill requires a federal banking agency to publish for notice and comment: (1) the agency's rationale for, and cost-benefit analysis regarding, the adoption of any prudential regulation that is substantively more stringent than a corresponding international prudential standard; and (2) a proposal for, or the agency's rationale for not proposing, the repeal or amendment of any prudential regulation that is effectively superseded by the implementation of an international prudential standard. A federal banking agency must issue a report regarding any such final rule issued before the bill's enactment and on or after January 1, 2007.