IIB 
115TH CONGRESS 
2D SESSION 
H. R. 4296 
IN THE SENATE OF THE UNITED STATES 
FEBRUARY 28, 2018 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
To place requirements on operational risk capital require-
ments for banking organizations established by an appro-
priate Federal banking agency. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. OPERATIONAL RISK CAPITAL REQUIREMENTS 
FOR BANKING ORGANIZATIONS. 
(a) IN GENERAL.—An appropriate Federal banking 
agency may not establish an operational risk capital re-
quirement for banking organizations, unless such require-
ment— 
(1) is based primarily on the risks posed by a 
banking organization’s current activities and busi-
nesses; 
(2) is appropriately sensitive to the risks posed 
by such current activities and businesses; 
(3) is determined under a forward-looking as-
sessment of potential losses that may arise out of a 
banking organization’s current activities, businesses, 
and exposures, which is not solely based on a bank-
ing organization’s historical losses; and 
(4) permits adjustments based on qualifying 
operational risk mitigants. 
(b) DEFINITIONS.—For purposes of this section: 
(1) APPROPRIATE
FEDERAL
BANKING
AGEN-
CY.—The term ‘‘appropriate Federal banking agen-
cy’’— 
(A) has the meaning given such term 
under section 3 of the Federal Deposit Insur-
ance Act; and 
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(B) means the National Credit Union Ad-
ministration, in the case of an insured credit 
union. 
(2) 
BANKING
ORGANIZATION.—The 
term 
‘‘banking organization’’ means— 
(A) an insured depository institution (as 
defined under section 3 of the Federal Deposit 
Insurance Act); 
(B) an insured credit union (as defined 
under section 101 of the Federal Credit Union 
Act); 
(C) a depository institution holding com-
pany (as defined under section 3 of the Federal 
Deposit Insurance Act); 
(D) a company that is treated as a bank 
holding company for purposes of section 8 of 
the International Banking Act; and 
(E) a U.S. intermediate holding company 
established by a foreign banking organization 
pursuant to section 252.153 of title 12, Code of 
Federal Regulations. 
SEC. 2. REDUCTION OF SURPLUS FUNDS OF FEDERAL RE-
SERVE BANKS. 
(a) IN GENERAL.—Section 7(a)(3)(A) of the Federal 
Reserve Act (12 U.S.C. 289(a)(3)(A)) is amended by 
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striking 
‘‘$7,500,000,000’’ 
and 
inserting 
‘‘$7,468,571,428’’. 
(b) EFFECTIVE DATE.—Subsection (a) shall take ef-
fect on May 1, 2018. 
Passed the House of Representatives February 27, 
2018. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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