Stress Testing Accountability and Transparency Act

Bill: 118-hr-8287
Sponsor: full_name: Rep. Barr, Andy [R-KY-6]
Introduced: 2024-05-08
Policy area: Finance and Financial Sector
Latest action: action_date: 2024-05-08
text: Referred to the House Committee on Financial Services.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 8287 IN THE HOUSE OF REPRESENTATIVES May 8, 2024 Mr. Barr introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the Board of Governors of the Federal Reserve System to issue a rule relating to stress capital buffer requirements, and for other purposes.

1. Short title This Act may be cited as the Stress Testing Accountability and Transparency Act . 2. Rulemaking related to stress capital buffer requirements (a) In general Not later than 90 days after the date of the enactment of this section, the Board of Governors of the Federal Reserve System (in this Act referred to as the Board ) shall issue a rule to establish any models, assumptions, formulas, or other decisional methodologies that are used to determine any component or subcomponent of the stress capital buffer requirement for a bank holding company. (b) Changes The Board may only make changes to the rule issued under subsection (a) through notice and comment rulemaking. (c) Stress capital buffer requirement defined The term stress capital buffer requirement has the meaning given the term in section 225.8(c) of title 12 of the Code of Federal Regulations. 3. Rulemaking relating to stress testing (a) In general Beginning in the first calendar year after the date of the enactment of this section, the Board shall, not less than 30 days before conducting a stress test pursuant to section 165(i) of the Financial Stability Act of 2010, issue a rule to establish each scenario used to be used in such stress test. (b) Prohibition The Board may not, by rule or otherwise, subject any nonbank financial company to a climate-related stress test using the authority provided in section 165(i) of the Financial Stability Act of 2010. 4. GAO report (a) In general The Comptroller General of the United States shall, every 3 years, conduct a study and submit a report to the Congress with respect to the stress tests conducted by the Board under section 165(i) of the Financial Stability Act of 2010 in the 3 most recent calendar years. (b) Contents The report submitted to the Congress under subsection (a) shall— (1) evaluate whether the stress tests are sufficiently robust and promote preparedness; and (2) consider whether the stress tests adequately identify salient risks to— (A) the safety and soundness of the nonbank financial institutions subjected to stress tests; and (B) the stability of the United States financial system.