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

Bill: 115-hr-4296
Sponsor: full_name: Rep. Luetkemeyer, Blaine [R-MO-3]
Introduced: 2017-11-08
Policy area: Finance and Financial Sector
Subjects: Bank accounts, deposits, capital

Federal Reserve System
Latest action: action_date: 2018-02-28
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2017-11-08
action_desc: Introduced in House
text: <p>This bill specifies that a&nbsp;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.</p>

action_date: 2018-02-23
action_desc: Reported to House with amendment(s)
text: <p>(Sec. 1) This bill specifies that a&nbsp;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. </p>

action_date: 2018-02-27
action_desc: Passed House amended
text: <p>(Sec. 1) This bill specifies that a&nbsp;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. </p> <p>(Sec. 2) The bill amends the Federal Reserve Act to lower the maximum allowable amount of&nbsp;surplus funds of the Federal Reserve banks.</p>

tv_txt: I 115th CONGRESS 1st Session H. R. 4296 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.

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.

tv_txt: 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 requirements for banking organizations established by an appropriate Federal banking agency.

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. 2. Reduction of surplus funds of Federal reserve 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 striking $7,500,000,000 and inserting $7,468,571,428 . (b) Effective date Subsection (a) shall take effect on May 1, 2018.

Passed the House of Representatives February 27, 2018. Karen L. Haas, Clerk

tv_txt: IB Union Calendar No. 434 115th CONGRESS 2d Session H. R. 4296 [Report No. 115–574] 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 February 23, 2018 Additional sponsor: Mr. Sessions February 23, 2018 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on November 8, 2017 A BILL To place requirements on operational risk capital requirements for banking organizations established by an appropriate Federal banking agency.

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.

February 23, 2018 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

tv_txt: I 115th CONGRESS 2d Session H. R. 4296 IN THE HOUSE OF REPRESENTATIVES AN ACT To place requirements on operational risk capital requirements for banking organizations established by an appropriate Federal banking agency.

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. 2. Reduction of surplus funds of Federal reserve 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 striking $7,500,000,000 and inserting $7,468,571,428 . (b) Effective date Subsection (a) shall take effect on May 1, 2018.

Passed the House of Representatives February 27, 2018. Karen L. Haas, Clerk.