HR 2121 — Pension, Endowment, and Mutual Fund Access to Banking Act

Moulton, Mr.

Loebsack, and Mrs.

Wagner April 26, 2018 Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on April 25, 2017] _______________________________________________________________________ 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.

(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 custodialcustody bank that are deposited with a central bank shall not be taken into account when calculating the applicable supplementary leverage ratio for the custodialcustody bankbank. under such regulations.

(b) Limitation.--TheLimitations.-- (1) Amounts.--The amount of funds described under subsection (a) mayshall notbe exceedlimited to-- (A) the total value of deposits of the custodialcustody bank linked to fiduciary or custodial and safekeeping accounts.accounts;

(c)or Additional(B) 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 custodialcustody bank, based on considerations such as the potential impact on the safety and soundness of the custodialcustody bank and the ability of the custodialcustody bank to continue to accept cash deposits from customers that are linked to fiduciary or custodial and safekeeping accounts;accounts.

and (2) amountsHigh-quality depositedcentral withbank certainrequirements.--Subsection (a) only applies to central banks,banks asthat determinedare throughhigh-quality rulemakingcentral bybanks, theincluding-- appropriate(A) the Federal bankingReserve agencies.System;

(B) the European Central Bank;

and (C) central banks of member countries of the Organisation for Economic Co-operation and Development, if-- (i) the central bank of such member country has been assigned a zero percent risk weight under the final rules titled ``Regulatory Capital Rules:

Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition Provisions, Prompt Corrective Action, Standardized Approach for Risk-weighted Assets, Market Discipline and Disclosure Requirements, Advanced Approaches Risk-Based Capital Rule, and Market Risk Capital Rule'' (78 Fed.

Reg.

62018;

published Oct.

11, 2013, and 79 Fed.

Reg.

20754;

published April 14, 2014);

and (ii) the sovereign debt of such member country is not in default or has not been in default during the previous five years.

(c) Regulations.--Not later than 60 days after the date of the enactment of this Act, the appropriate Federal banking agencies shall revise applicable regulations to carry out this Act.

(2) CustodialCustody bank.--bank.--The (A) In general.--The term ``custodial``custody bank'' means a depository institution andholding thecompany depositorypredominantly institutionengaged holdingin companycustody, ofsafekeeping, suchand depositoryasset institution,servicing bothactivities, ofincluding whichany areinsured primarilydepository engagedinstitution insubsidiary custodialof banking.such a holding company.

(B)(3) CustodialDepository bankinginstitution defined.--Forholding purposescompany.--The ofterm this``depository paragraph,institution theholding appropriatecompany'' Federalhas bankingthe agenciesmeaning maygiven definethat the term ``custodialunder banking''section based3 on factors including the percentage of total revenues generated by custodial businesses and the levelFederal ofDeposit assetsInsurance underAct custody.(12 U.S.C.

(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.

(4) DepositoryInsured institutiondepository holdinginstitution.--The company.--The term ``depository``insured institutiondepository holdinginstitution'' company'' has the meaning given that term under section 3 of the Federal Deposit Insurance Act (12 U.S.C.

(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.Regulations, as in effect on October 1, 2017.

<all>Amend the title so as to read:

``A bill to ensure that certain funds shall not be taken into account when calculating any supplementary leverage ratio for custody banks, and for other purposes.''.

Union Calendar No.

504 115th CONGRESS 2d Session H.

R.

2121 [Report No.

115-656] _______________________________________________________________________ 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.

_______________________________________________________________________ April 26, 2018 Reported with amendments, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed