Effective Bank Regulation Act

Bill: 118-hr-3992
Sponsor: full_name: Rep. Sherman, Brad [D-CA-32]
Introduced: 2023-06-09
Policy area: Finance and Financial Sector
Latest action: action_date: 2023-06-09
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2023-06-09
action_desc: Introduced in House
text: <p><b>Effective Bank Regulation Act </b></p> <p>This bill requires the Board of Governors of the Federal Reserve System to test additional scenarios during annual stress tests. Specifically, when evaluating whether a nonbank financial company or bank holding company has the capital to absorb losses due to adverse economic conditions, the board must test for three additional scenarios, including scenarios that incorporate interest rate changes. </p>

tv_txt: I 118th CONGRESS 1st Session H. R. 3992 IN THE HOUSE OF REPRESENTATIVES June 9, 2023 Mr. Sherman introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Financial Stability Act of 2010 to require stress tests performed pursuant to that Act to evaluate for the increase and decrease of interest rates, and for other purposes.

1. Short title This Act may be cited as the Effective Bank Regulation Act . 2. Stress test scenario Section 165(i)(1)(B)(i) of the Financial Stability Act of 2010 ( 12 U.S.C. 5365(i)(1)(B)(i) ) is amended— (1) by striking 2 different and inserting 5 different ; and (2) by striking baseline and severely adverse and inserting baseline, adverse, severely adverse, a set of conditions that evaluates for increases in interest rates, and a set of conditions that evaluates for decreases in interest rates .