Bank Risk Reduction Act of 2024

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8153 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 8153

To amend the Wall Street Transparency and Accountability Act of 2010 to 
provide covered banking institutions with certain exemptions related to 
              interest rate swaps, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 29, 2024

  Mr. Mooney (for himself, Mr. Donalds, and Mr. Ogles) introduced the 
   following bill; which was referred to the Committee on Financial 
Services, and in addition to the Committee on Agriculture, for a period 
    to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
To amend the Wall Street Transparency and Accountability Act of 2010 to 
provide covered banking institutions with certain exemptions related to 
              interest rate swaps, 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 ``Bank Risk Reduction Act of 2024''.

SEC. 2. EXEMPTIONS FOR CERTAIN INTEREST RATE SWAPS OF COVERED BANKING 
              INSTITUTIONS.

    (a) In General.--The Wall Street Transparency and Accountability 
Act of 2010 (12 U.S.C. 8301 et seq.) is amended by inserting after 
section 754 the following:

``SEC. 755. EXEMPTIONS FOR CERTAIN INTEREST RATE SWAPS OF COVERED 
              BANKING INSTITUTIONS.

    ``(a) In General.--A covered banking institution--
            ``(1) shall be exempt from any clearing or margin 
        requirements applicable to an interest rate swap that hedges 
        interest rate risk of debt securities or loans held on the 
        balance sheet of the covered banking institution, including any 
        requirements under sections 2(h) or 4s(e) of Commodity Exchange 
        Act and the regulations promulgated thereunder;
            ``(2) may use hedge accounting with respect to debt 
        securities or loans held on the balance sheet of the covered 
        banking institution;
            ``(3) is not subject to any requirement, including the 
        Financial Accounting Standards Board's Accounting Standard 
        Codification paragraph 815-20-25-43(c)(2), that restricts a 
        covered banking institution from an option to designate a fair 
        value hedge on the risks of changes in the fair value 
        attributable to the interest rate risk of a held-to-maturity 
        debt security; and
            ``(4) is not subject to any requirement, including the 
        Financial Accounting Standards Board's Accounting Standard 
        Codification paragraph 815-20-25-43(d)(2), that restricts a 
        covered banking institution from an option to designate a cash 
        flow hedge to the risks of changes in the cash flows 
        attributable to interest rate risk that result from variable 
        cash flows of a held-to-maturity debt security.
    ``(b) Definitions.--In this section:
            ``(1) Covered banking institution.--The term `covered 
        banking institution' means an insured depository institution or 
        depository institution holding company.
            ``(2) Interest rate swap.--With respect to a covered 
        banking institution, the term `interest rate swap' means a swap 
        entered into by the covered banking institution for the purpose 
        of hedging against the interest rate risk of debt securities or 
        loans held on the balance sheet of the covered banking 
        institution.
            ``(3) Hedge accounting.--The term `hedge accounting' means 
        the accounting rules and regulations that enable the financial 
        reporting of hedging relationships to better portray the 
        economic results of an entity's risk management activities in 
        its financial statements, including the accounting rules and 
        guidance provided by the Financial Accounting Standards Board.
            ``(4) Fair value.--The term `fair value' means the price 
        that would be received to sell an asset or paid to transfer a 
        liability in an orderly transaction between market participants 
        at the measurement date.''.
    (b) Clerical Amendment.--The table of contents in section 1(b) of 
the Dodd-Frank Wall Street Reform and Consumer Protection Act is 
amended by inserting after the item relating to section 754 the 
following:

``Sec. 755. Exemptions for certain interest rate swaps of covered 
                            banking institutions.''.
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