,,ii #aacth ,,congress #ast ,session ,s4 #gcg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #af1 #bjac ,mr4 ,shelby introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to require the ,federal banking agencies to conduct a quantitative impact study on the cumulative effect of the ,basel ,,iii framework devised by the ,basel ,committee on ,banking ,supervision before issuing final rules amending the agencies' general risk-based capital requirements for determining risk-weighted assets1 as proposed in the ,advanced ,approaches ,risk-,based ,capital ,rules ,notice of ,proposed ,rulemaking1 the ,standardized ,approach for ,risk-,weighted ,assets ,notice of ,proposed ,rulemaking1 and the ,implementation of ,basel ,,iii1 ,minimum ,regulatory ,capital ,ratios ,notice of ,proposed ,rulemaking issued in ,june #bjab1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,basel ,,iii ,impact ,study ,act4 #b4 ,study required ,the ,office of the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 and the ,federal ,deposit ,insurance ,corporation 7in this ,act referred to as the ,federal banking agencies7 shall conduct the study and issue the report to ,congress required by section #c prior to issuing any final rule amending general risk-based capital requirements for-- 7#a7 revising the advanced-approaches risk-based capital requirements1 as proposed in the ,advanced ,approaches ,risk-,based ,capital ,rule of ,notice of ,proposed ,rulemaking issued in ,june #bjab and published in the ,federal ,register on ,august #cj1 #bjab 7in this ,act referred to as the ,advanced ,approach ,,npr72 7#b7 determining risk-weighted assets1 as proposed in the ,standardized ,approach for ,risk-,weighted ,assets ,notice of ,proposed ,rulemaking issued in ,june #bjab and published in the ,federal ,register on ,august #cj1 #bjab 7in this ,act referred to as the ,standardized ,approach ,,npr72 and 7#c7 determining minimum regulatory capital ratios1 as proposed in the ,regulatory ,capital1 ,implementation of ,basel ,,iii1 ,minimum ,regulatory ,capital ,ratios1 ,capital ,adequacy1 ,transition ,provisions1 and ,prompt ,corrective ,action ,notice of ,proposed ,rulemaking issued in ,june #bjab and published in the ,federal ,register on ,august #cj1 #bjab 7in this ,act referred to as the ,basel ,,iii ,,npr and collectively with the ,advanced ,approach ,,npr and the ,standardized ,approach ,,npr1 the ,n,p,rs74 #c4 ,study and report 7a7 ,study 7#a7 ,in general ,the ,federal banking agencies shall jointly conduct a quantitative impact study of the effect of the ,n,p,rs on the minimum regulatory capital requirements of insured depository institutions and insured depository institution holding companies4 7#b7 ,scope of ,study ,as part of the study required by this subsection1 the ,federal banking agencies shall-- 7,a7 determine current capital levels 7as of ,december #ca1 #bjab7 at financial institutions covered by such report2 7,b7 separately identify specific provisions in-- 7i7 the ,basel ,,iii framework devised by the ,basel ,committee on ,banking ,supervision 7in this ,act referred to as the ,basel ,,iii provisions72 and 7ii7 the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act1 and of amendments made by that ,act 7in this ,act referred to as the ,dodd-,frank provisions1 and collectively with the ,basel ,,iii provisions1 referred to as the identified provisions7 which shall include from the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act1 and the amendments made by that ,act-- 7,i7 section #aae 7regarding enhanced supervision and prudential standards72 7,,ii7 section #afe 7regarding enhanced supervision and prudential standards72 7,,iii7 section #aff 7regarding early remediation requirements72 7,,iv7 section #aga 7regarding leverage and risk-based capital requirements72 7,v7 section #fai 7regarding prohibitions on proprietary trading and certain relationships with hedge funds and private equity funds72 7,,vi7 section #ici 7regarding the removal of statutory references to credit ratings72 7,,vii7 section #ida 7regarding regulation of credit risk retention and exemption of qualified residential mortgages72 and 7,,viii7 section #adab 7regarding safe harbor and rebuttable presumptions for qualified mortgages72 and 7,c7 estimate and evaluate the impact of such identified provisions on affected ,united ,states institutions in accordance with this section4 7#c7 ,contents of study ,the ,federal banking agencies shall-- 7,a7 in conducting the study required by this section1 determine and estimate the likely cumulative impact of the ,n,p,rs and the identified provisions on required regulatory capital levels1 capital quality1 asset quality1 and risk management at covered ,united ,states financial institutions2 and 7,b7 based on such findings1 provide an assessment regarding-- 7i7 changes to required capital levels in the aggregate1 per asset class and institution size based on the ,basel ,,iii provisions1 the ,dodd-,frank provisions1 and separately1 on the identified provisions2 7ii7 the aggregate increase or decrease of total risk-weighted asset levels for the institutions to which the ,advanced ,approach ,,npr and the ,standardized ,approach ,,npr would be applicable based on their size and asset class2 7iii7 whether the ,n,p,rs 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 what1 if any1 safety and soundness issues such fluctuations raise for financial institutions or the financial system1 including a determination of whether such fluctuations will make the ,united ,states financial system more or less safe than the current rules2 7iv7 whether the ,n,p,rs 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 system2 7v7 the cumulative impact that the ,n,p,rs and the identified provisions will have on-- 7,i7 the ,united ,states economic growth1 in general1 and specifically1 on the ,gross ,domestic ,product2 7,,ii7 availability and cost of credit in low- and moderate-income areas2 and 7,,iii7 availability and cost of residential mortgages1 home equity lines of credit1 auto loans1 student loans1 and commercial loans1 including small business credit2 7vi7 the variance in required capital levels1 assets1 and asset quality between institutions that implement the advanced approaches or approaches to risk weighting of assets1 as proposed in the ,advanced ,approaches ,,npr1 and those that use the standardized approach1 as proposed in the ,standardized ,approach ,,npr1 and the impact on competition between entities using different approaches2 and 7vii7 historical probability of default and loss given default of residential mortgage loans and the proposed risk weightings in the ,standardized ,approach ,,npr1 and whether such proposed risk weightings are appropriately and fairly calibrated4 7#d7 ,voluntary participation ,in carrying out the study required by this section1 the ,federal banking agencies-- 7,a7 shall rely on data available to the agencies through call reports and other data gathering processes already employed by the ,federal banking agencies2 and 7,b7 may seek input and participation from insured depository institutions and insured depository institution holding companies1 provided that such request shall not impose undue burden on participating institutions and that participation in the study by any insured depository institutions or insured depository institution holding companies shall be voluntary4 7b7 ,report 7#a7 ,in general ,not later than #i months after the date of enactment of this ,act1 the ,federal banking agencies shall issue a report to the ,committee on ,banking1 ,housing1 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 7a74 7#b7 ,contents ,the ,federal banking agencies shall include the methodologies and assumptions used in the study1 as well as the required elements of the study listed in subsection 7a7 in the report required in this subsection4 #d4 ,competitive equality ,section #ijh7;a77#a7 of the ,international ,lending ,supervision ,act of #aihc 7#ab ,u4,s4,c4 #cijg7;a77#a77 is amended by adding at the end the following3 ,each appropriate ,federal banking agency shall1 consistent with safety and soundness1 seek to ensure that any differences in rules implementing the capital standards required under this section or other provisions of ,federal law for banking institutions1 savings associations1 bank holding companies1 and savings and loan holding companies do not give competitive advantages to any class or group of such institutions1 associations1 or companies1 unless required by other ,federal law1 and do not undermine any requirements for enhanced supervision and prudential standards required by section #aae of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecbe744