Bank Lending Stimulus Act

Bank Lending Stimulus Act - Establishes an 18-month moratorium during which a Federal banking regulatory agency is prohibited from imposing or enforcing upon an adequately capitalized insured bank any leverage limit which requires a ratio of tangible equity to total assets greater than three percent. Cites exceptions for insured banks with insufficient loan loss reserves, or operating in an unsafe or unsound manner.

 
HR 5043 IH
102d CONGRESS
2d Session
 H. R. 5043
To reduce and standardize the leverage limit capital standard applicable to
qualified banks on a temporary basis to stimulate the economy by encouraging
bank lending to small and medium-sized businesses and to consumers.
IN THE HOUSE OF REPRESENTATIVES
April 30, 1992
Mr. KENNEDY introduced the following bill; which was referred to the Committee
on Banking, Finance and Urban Affairs
A BILL
To reduce and standardize the leverage limit capital standard applicable to
qualified banks on a temporary basis to stimulate the economy by encouraging
bank lending to small and medium-sized businesses and to consumers.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Bank Lending Stimulus Act'.
SEC. 2. REDUCTION AND STANDARDIZATION OF LEVERAGE LIMIT CAPITAL STANDARD
APPLICABLE TO QUALIFIED BANKS.
  (a) IN GENERAL- In the case of any adequately capitalized insured bank,
  the appropriate Federal banking agency may not impose or enforce, during
  the 18-month period beginning on the date of the enactment of this Act,
  any leverage limit with respect to such bank which requires a ratio of
  tangible equity to total assets greater than 3 percent.
  (b) EXCEPTION- Subsection (a) shall not apply with respect to an insured
  bank which the appropriate Federal banking agency determines--
  (1) lacks sufficient loan loss reserves; or
  (2) is operating in an unsafe or unsound manner.
  (c) DEFINITIONS- For purposes of this section--
  (1) ADEQUATELY CAPITALIZED- The term adequately capitalized has the
  meaning given to such term in section 38(b)(1)(B) of the Federal Deposit
  Insurance Act.
  (2) APPROPRIATE FEDERAL BANKING AGENCY- The term `appropriate Federal
  banking agency' has the meaning given to such term in section 3(q) of the
  Federal Deposit Insurance Act.
  (3) INSURED BANK- The term `insured bank' has the meaning given such term
  in section 3(h) of the Federal Deposit Insurance Act.
  (4) LEVERAGE LIMIT- The term `leverage limit' means the capital standard
  relating to the minimum ratio of leverage capital to total assets established
  by the appropriate Federal banking agency pursuant to section 38(c)(1)(A)(i)
  of the Federal Deposit Insurance Act.