Pension, Endowment, and Mutual Fund Access to Banking Act

Pension, Endowment, and Mutual Fund Access to Banking Act

This bill excludes, for purposes of calculating a custodial bank's supplementary leverage ratio, funds of a custodial bank that are deposited with certain central banks. ("Supplementary leverage ratio" is a capital adequacy measure that refers to the ratio of a banking organization's tier-one capital to its leverage exposure.) The amount of such funds shall be limited, as specified by the bill.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2121 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2121

     To require the appropriate Federal banking agencies to revise 
   regulations to specify that certain funds shall not be taken into 
account when calculating any supplementary leverage ratio for custodial 
                     banks, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 25, 2017

Mr. Rothfus (for himself, Mr. Foster, and Mr. Hultgren) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
     To require the appropriate Federal banking agencies to revise 
   regulations to specify that certain funds shall not be taken into 
account when calculating any supplementary leverage ratio for custodial 
                     banks, 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 ``Pension, Endowment, and Mutual Fund 
Access to Banking Act''.

SEC. 2. TREATMENT OF FUNDS DEPOSITED WITH A CENTRAL BANK IN CALCULATING 
              THE APPLICABLE SUPPLEMENTARY LEVERAGE RATIO.

    (a) In General.--The appropriate Federal banking agencies shall 
amend the relevant sections of title 12, Code of Federal Regulations, 
to specify that funds of a custodial bank that are deposited with a 
central bank shall not be taken into account when calculating the 
applicable supplementary leverage ratio for the custodial bank under 
such regulations.
    (b) Limitation.--The amount of funds described under subsection (a) 
may not exceed the total value of deposits of the custodial bank linked 
to fiduciary or custodial and safekeeping accounts.
    (c) Additional Considerations.--The amount of funds described under 
subsection (a) may be limited to--
            (1) an amount that is greater than a percentage specified 
        by the appropriate Federal banking agency of the total leverage 
        exposure of the custodial bank, based on considerations such as 
        the potential impact on the safety and soundness of the 
        custodial bank and the ability of the custodial bank to 
        continue to accept cash deposits from customers that are linked 
        to fiduciary or custodial and safekeeping accounts; and
            (2) amounts deposited with certain central banks, as 
        determined through rulemaking by the appropriate Federal 
        banking agencies.
    (d) Definitions.--For purposes of this section:
            (1) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency'' has the meaning given 
        that term under section 3 of the Federal Deposit Insurance Act 
        (12 U.S.C. 1813).
            (2) Custodial bank.--
                    (A) In general.--The term ``custodial bank'' means 
                a depository institution and the depository institution 
                holding company of such depository institution, both of 
                which are primarily engaged in custodial banking.
                    (B) Custodial banking defined.--For purposes of 
                this paragraph, the appropriate Federal banking 
                agencies may define the term ``custodial banking'' 
                based on factors including the percentage of total 
                revenues generated by custodial businesses and the 
                level of assets under custody.
            (3) Depository institution.--The term ``depository 
        institution'' has the meaning given that term under section 3 
        of the Federal Deposit Insurance Act (12 U.S.C. 1813).
            (4) Depository institution holding company.--The term 
        ``depository institution holding company'' has the meaning 
        given that term under section 3 of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813).
            (5) Supplementary leverage ratio.--The term ``supplementary 
        leverage ratio'' means the supplementary leverage ratio, 
        including applicable buffers, surcharges, and well-capitalized 
        requirements relating to such supplementary leverage ratio, as 
        defined by regulation of the appropriate Federal banking agency 
        in title 12, Code of Federal Regulations.
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