Basel III Capital Impact Study Act - Directs the federal banking agencies (the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation [FDIC]), prior to issuing any final rule amending the agencies' general risk-based capital requirements for determining risk-weighted assets and minimum regulatory capital ratios as proposed in certain June 2012 notices of proposed rule making, to study and report regarding the impact of the approaches on the minimum regulatory capital requirements of insured depository institutions and insured depository institution holding companies.
Requires the banking agencies to separately identify provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) that affect capital quality, capital levels, asset quality, and the risk management activities of insured depository institutions and insured depository holding companies and take into consideration the impact of such provisions. Specifies Dodd-Frank provisions to be included.
Permits the banking agencies to solicit participation in the study from insured depository institutions and insured depository institution holding companies on a voluntary basis.
Amends the International Lending Supervision Act of 1983 to revise capital adequacy requirements by directing the banking agencies to seek to ensure that any differences in rules implementing the capital standards do not: (1) give competitive advantages to any class or group of institutions unless otherwise required by federal law, or (2) undermine Dodd-Frank requirements for enhanced supervision and prudential standards.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1221 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 1221
To require the Federal banking agencies to conduct an impact study on
the cumulative effect of certain provisions of the Dodd-Frank Wall
Street Reform and Consumer Protection Act before issuing final rules
amending the agencies' general risk-based capital requirements for
determining risk-weighted assets as proposed in the Standardized
Approach for Risk Weighted Assets Notice of Proposed Rulemaking and the
Advanced Approaches Risk-based Capital Rule; Market Risk Capital Rule
Notice of Proposed Rulemaking, and the Implementation of Basel III,
Minimum Regulatory Capital Ratios Notice of Proposed Rulemaking issued
in June 2012, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 15, 2013
Mr. Fincher introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To require the Federal banking agencies to conduct an impact study on
the cumulative effect of certain provisions of the Dodd-Frank Wall
Street Reform and Consumer Protection Act before issuing final rules
amending the agencies' general risk-based capital requirements for
determining risk-weighted assets as proposed in the Standardized
Approach for Risk Weighted Assets Notice of Proposed Rulemaking and the
Advanced Approaches Risk-based Capital Rule; Market Risk Capital Rule
Notice of Proposed Rulemaking, and the Implementation of Basel III,
Minimum Regulatory Capital Ratios Notice of Proposed Rulemaking issued
in June 2012, and for other purposes.
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 ``Basel III Capital Impact Study
Act''.
SEC. 2. STUDY REQUIRED.
The Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, and the Federal Deposit
Insurance Corporation (hereinafter, the ``Federal banking agencies'')
shall conduct the study and issue the report to Congress required by
section 3, prior to issuing any final rule amending the agencies'
general risk-based capital requirements for--
(1) determining risk-weighted assets as proposed in the
Standardized Approach for Risk Weighted Assets Notice of
Proposed Rulemaking issued in June 2012 (hereinafter, the
``Standardized Approach NPR'');
(2) determining risk-weighted assets as proposed in the
Advanced Approaches Risk-based Capital Rule; Market Risk
Capital Rule Notice of Proposed Rulemaking issued in June 2012
(hereinafter, the ``Advanced Approach NPR''); and
(3) determining minimum regulatory capital ratios as
proposed in the Regulatory Capital, Implementation of Basel
III, Minimum Regulatory Capital Ratios, Capital Adequacy,
Transition Provisions, and Prompt Corrective Action Notice of
Proposed Rulemaking issued in June 2012 (hereinafter, the
``Basel III NPR'').
SEC. 3. STUDY AND REPORT.
(a) Study.--
(1) In general.--The Federal banking agencies shall,
jointly, conduct a study of the impact of the Standardized
Approach NPR and the Advanced Approach NPR, respectively, on
the minimum regulatory capital requirements of insured
depository institutions and insured depository institution
holding companies. As part of this study, the Federal banking
agencies shall separately identify the various provisions of
the Dodd-Frank Wall Street Reform and Consumer Protection Act,
and of amendments made by that Act, that affect capital
quality, capital levels, asset quality, and the risk management
activities of insured depository institutions and insured
depository holding companies (hereinafter ``identified
provisions'') and take into consideration the impact of such
provisions. Without excluding any provisions the Federal
banking agencies identify as affecting capital quality, capital
levels, asset quality, and the risk management activities of
insured depository institutions and insured depository holding
companies, the identified provisions shall include the
following provisions of the Dodd-Frank Wall Street Reform and
Consumer Protection Act, and the amendments made by such
provisions of such Act:
(A) Section 115 (regarding enhanced supervision and
prudential standards).
(B) Section 165 (regarding enhanced supervision and
prudential standards).
(C) Section 166 (regarding early remediation
requirements).
(D) Section 171 (regarding leverage and risk-based
capital requirements).
(E) Section 619 (regarding prohibitions on
proprietary trading and certain relationships with
hedge funds and private equity funds).
(F) Section 939 (regarding the removal of statutory
references to credit ratings).
(G) Section 941 (regarding regulation of credit
risk retention and exemption of qualified residential
mortgages).
(H) Section 1412 (regarding safe harbor and
rebuttable presumptions for qualified mortgages).
(2) Contents of study.--In conducting the study required in
paragraph (1), the Federal banking agencies shall determine and
make projections of the likely cumulative impact of the
Standardized Approach NPR, the Advanced Approach NPR, the Basel
III NPR, and the identified provisions on required regulatory
capital levels, capital quality, asset quality, and risk
management at covered financial institutions. Based on these
findings, the Federal banking agencies shall provide an
assessment regarding--
(A) changes to required capital levels;
(B) the aggregate increase or decrease of total
risk-weighted asset levels for the institutions to
which the Standardized Approach NPR or Advanced
Approach NPR would be applicable based on current
assets;
(C) whether the NPRs and identified provisions will
cause capital levels at covered institutions to
fluctuate with more frequency or by greater amounts
than the current rules and indicate what, if any,
safety and soundness issues such fluctuations raise for
financial institutions or the financial system;
(D) whether the NPRs and the identified provisions
will result in the discontinuation of the use of
certain risk management tools by covered financial
institutions and the impact on the safety and soundness
of financial institutions and the financial system;
(E) the impact the NPRs and the identified
provisions will have on residential mortgage lending
and home equity lines of credit;
(F) the likely cumulative impact of the NPRs and
the identified provisions will have on the availability
of credit, generally and in low- and moderate-income
areas;
(G) the variance in required capital levels,
assets, and asset quality between institutions that
implement the advanced approaches or approaches to risk
weighting of assets and those that use the Standardized
Approach NPR or the Advanced Approach NPR and the
impact on competition between entities using different
approaches; and
(H) historical probability of default and loss
given default of residential mortgage loans and the
proposed risk weightings in the Standardized Approach
NPR and the Advanced Approach NPR, and whether such
proposed risk weightings are appropriately and fairly
calibrated.
(3) Voluntary participation.--The Federal banking agencies
may seek input and participation from insured depository
institutions and insured depository institution holding
companies, however, participation in the study by insured
depository institutions and insured depository institution
holding companies shall be voluntary.
(b) Report.--
(1) In general.--The Federal banking agencies shall issue a
report to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services of the
House of Representatives on the results of the study required
by subsection (a).
(2) Contents.--The Federal banking agencies shall include
the methodologies and assumptions used in the study as well as
the required elements of the study listed in subsection (a) in
the report required in this subsection.
SEC. 4. COMPETITIVE EQUALITY.
Section 908(a)(1) of the International Lending Supervision Act of
1983 (12 U.S.C. 3907(a)(1)) is amended by inserting at the end the
following:
``Each appropriate Federal banking agency shall, consistent with
safety and soundness, seek to ensure that any differences in rules
implementing the capital standards required under this section or other
provisions of Federal law for banking institutions, savings
associations, bank holding companies, and savings and loan holding
companies do not give competitive advantages to any class or group of
such institutions, associations, or companies unless required by other
Federal law, and do not undermine any requirements for enhanced
supervision and prudential standards required by section 115 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C.
5325).''.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E310)
Referred to the House Committee on Financial Services.
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