SEC. 2. TREATMENT OF FUNDS DEPOSITED WITH A CEN-
TRAL BANK IN CALCULATING THE APPLICA-
BLE SUPPLEMENTARY LEVERAGE RATIO. 
(a) IN GENERAL.—The appropriate Federal banking 
agencies shall amend the relevant sections of title 12, Code 
of Federal Regulations, to specify that funds of a custodial 
bank that are deposited with a central bank shall not be 
taken into account when calculating the applicable supple-
mentary leverage ratio for the custodial bank under such 
regulations. 
(b) LIMITATION.—The amount of funds described 
under subsection (a) may not exceed the total value of de-
posits of the custodial bank linked to fiduciary or custodial 
and safekeeping accounts. 
(c) ADDITIONAL CONSIDERATIONS.—The amount of 
funds described under subsection (a) may be limited to— 
(1) an amount that is greater than a percent-
age specified by the appropriate Federal banking 
agency of the total leverage exposure of the custodial 
bank, based on considerations such as the potential 
impact on the safety and soundness of the custodial 
bank and the ability of the custodial bank to con-
tinue to accept cash deposits from customers that 
are linked to fiduciary or custodial and safekeeping 
accounts; and 
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(2) amounts deposited with certain central 
banks, as determined through rulemaking by the ap-
propriate Federal banking agencies. 
(d) DEFINITIONS.—For purposes of this section: 
(1) APPROPRIATE
FEDERAL
BANKING
AGEN-
CY.—The term ‘‘appropriate Federal banking agen-
cy’’ has the meaning given that term under section 
3 of the Federal Deposit Insurance Act (12 U.S.C. 
1813). 
(2) CUSTODIAL BANK.— 
(A) IN
GENERAL.—The term ‘‘custodial 
bank’’ means a depository institution and the 
depository institution holding company of such 
depository institution, both of which are pri-
marily engaged in custodial banking. 
(B) CUSTODIAL BANKING DEFINED.—For 
purposes of this paragraph, the appropriate 
Federal banking agencies may define the term 
‘‘custodial banking’’ based on factors including 
the percentage of total revenues generated by 
custodial businesses and the level of assets 
under custody. 
(3) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’ has the meaning given that 
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term under section 3 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813). 
(4) DEPOSITORY INSTITUTION HOLDING COM-
PANY.—The term ‘‘depository institution holding 
company’’ has the meaning given that term under 
section 3 of the Federal Deposit Insurance Act (12 
U.S.C. 1813). 
(5) SUPPLEMENTARY LEVERAGE RATIO.—The 
term ‘‘supplementary leverage ratio’’ means the sup-
plementary leverage ratio, including applicable buff-
ers, surcharges, and well-capitalized requirements 
relating to such supplementary leverage ratio, as de-
fined by regulation of the appropriate Federal bank-
ing agency in title 12, Code of Federal Regulations. 
Æ 
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