Title: To place requirements on operational risk capital requirements for banking organizations established by an appropriate Federal banking agency.
Policy area: Finance and Financial Sector

Summary:
This bill specifies that a federal banking agency may not establish an operational-risk capital requirement for banking organizations unless the requirement: (1) is based on, and is appropriately sensitive to, current risks; (2) is determined under a forward-looking assessment of potential losses; and (3) allows certain adjustments.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4296 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 4296

  To place requirements on operational risk capital requirements for 
  banking organizations established by an appropriate Federal banking 
                                agency.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 8, 2017

 Mr. Luetkemeyer (for himself and Mr. Meeks) introduced the following 
    bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To place requirements on operational risk capital requirements for 
  banking organizations established by an appropriate Federal banking 
                                agency.

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

SECTION 1. OPERATIONAL RISK CAPITAL REQUIREMENTS FOR BANKING 
              ORGANIZATIONS.

    (a) In General.--An appropriate Federal banking agency may not 
establish an operational risk capital requirement for banking 
organizations, unless such requirement--
            (1) is based primarily on the risks posed by a banking 
        organization's current activities and businesses;
            (2) is appropriately sensitive to the risks posed by such 
        current activities and businesses;
            (3) is determined under a forward-looking assessment of 
        potential losses that may arise out of a banking organization's 
        current activities, businesses, and exposures, which is not 
        solely based on a banking 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 agency.--The term 
        ``appropriate Federal banking agency''--
                    (A) has the meaning given such term under section 3 
                of the Federal Deposit Insurance Act; and
                    (B) means the National Credit Union Administration, 
                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 company (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.
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