A bill to amend the Financial Stability Act of 2010 to provide for tailoring and indexing enhanced regulations.
Sponsored By: Senator Britt, Katie Boyd [R-AL]
Introduced
Summary
Raises and indexes the asset thresholds that trigger enhanced financial regulation. This bill would lift multiple statutory asset triggers and create standing, five-year adjustment rules tied to broad economic indicators so coverage keeps pace with growth or inflation.
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- Banks and big financial firms: Would raise key statutory thresholds, for example the Bank Holding Company Act trigger from $10 billion to $15 billion and several systemic thresholds from $250 billion to $370 billion.
- Regulators and rule-based limits: Would require the Board of Governors, the Office of the Comptroller of the Currency, and the FDIC to review and adjust rule-based thresholds at least every five years. The Board would pick whether to use nominal GDP or the Consumer Price Index within three months and report its choices to the House and Senate banking committees.
- Who is affected: Would push the size cutoff for enhanced supervision higher so fewer institutions meet those triggers, while indexing those cutoffs so they rise automatically with the chosen economic indicator.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 0 costs, 2 mixed.
Higher dollar tests for banks
If enacted, this bill would immediately raise many statutory asset-size dollar tests. Examples: $10 billion would become $15 billion, $50 billion would become $75 billion, $100 billion would become $150 billion, and $250 billion would become $370 billion. These increases would take effect on enactment and would change which firms meet statutory size tests and face enhanced supervision.
Agency reviews of bank rule limits
This bill would require the Federal Reserve, OCC, and FDIC to review rules tied to enhanced supervision within 180 days and then at least every 5 years. Agencies must pick GDP or the CPI within 3 months for each rule threshold and use published values to raise nonstatutory numeric limits if the indicator ratio is above 1. Agencies would seek uniform thresholds, use the same rounding rules as the statute, and report any changes to House and Senate banking committees.
Automatic increases to bank size tests
This bill would require the Federal Reserve Board to raise certain statutory dollar limits on bank and financial firm size. The Board must choose either U.S. nominal GDP or the Consumer Price Index within 3 months after enactment. Not later than 1 year after enactment and at least every 5 years, the Board would multiply each covered limit by the indicator ratio if it is greater than 1. Calculated amounts would be published by April 5 of adjustment years, rounded per the bill, and take effect January 1 after the calculation year.
Sponsors & CoSponsors
Sponsor
Britt, Katie Boyd [R-AL]
AL • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov