,,ii #aac? ,,congress #a/ ,session ,s4 #gcg ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,april #af1 #bjac ,mr4 ,%elby introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to require ! ,f$]al bank+ ag5cies to conduct a quantitative impact /udy on ! cumulative effect ( ! ,basel ,,iii framework devis$ by ! ,basel ,committee on ,bank+ ,sup]vision be=e issu+ f9al rules am5d+ ! ag5cies' g5]al risk-bas$ capital requirem5ts = det]m9+ risk-weight$ assets1 z propos$ 9 ! ,advanc$ ,approa*es ,risk-,bas$ ,capital ,rules ,notice ( ,propos$ ,rulemak+1 ! ,/&>diz$ ,approa* = ,risk-,weight$ ,assets ,notice ( ,propos$ ,rulemak+1 & ! ,implem5tation ( ,basel ,,iii1 ,m9imum ,regulatory ,capital ,ratios ,notice ( ,propos$ ,rulemak+ issu$ 9 ,june #bjab1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,basel ,,iii ,impact ,/udy ,act4 #b4 ,/udy requir$ ,! ,(fice ( ! ,comptroll] ( ! ,curr5cy1 ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em1 & ! ,f$]al ,deposit ,insurance ,corporation 79 ?is ,act ref]r$ to z ! ,f$]al bank+ ag5cies7 %all conduct ! /udy & issue ! report to ,congress requir$ by section #c prior to issu+ any f9al rule am5d+ g5]al risk-bas$ capital requirem5ts =-- 7#a7 revis+ ! advanc$-approa*es risk-bas$ capital requirem5ts1 z propos$ 9 ! ,advanc$ ,approa*es ,risk-,bas$ ,capital ,rule ( ,notice ( ,propos$ ,rulemak+ issu$ 9 ,june #bjab & publi%$ 9 ! ,f$]al ,regi/] on ,augu/ #cj1 #bjab 79 ?is ,act ref]r$ to z ! ,advanc$ ,approa* ,,npr72 7#b7 det]m9+ risk-weight$ assets1 z propos$ 9 ! ,/&>diz$ ,approa* = ,risk-,weight$ ,assets ,notice ( ,propos$ ,rulemak+ issu$ 9 ,june #bjab & publi%$ 9 ! ,f$]al ,regi/] on ,augu/ #cj1 #bjab 79 ?is ,act ref]r$ to z ! ,/&>diz$ ,approa* ,,npr72 & 7#c7 det]m9+ m9imum regulatory capital ratios1 z propos$ 9 ! ,regulatory ,capital1 ,implem5tation ( ,basel ,,iii1 ,m9imum ,regulatory ,capital ,ratios1 ,capital ,adequacy1 ,transition ,provisions1 & ,prompt ,corrective ,action ,notice ( ,propos$ ,rulemak+ issu$ 9 ,june #bjab & publi%$ 9 ! ,f$]al ,regi/] on ,augu/ #cj1 #bjab 79 ?is ,act ref]r$ to z ! ,basel ,,iii ,,npr & collectively ) ! ,advanc$ ,approa* ,,npr & ! ,/&>diz$ ,approa* ,,npr1 ! ,n,p,rs74 #c4 ,/udy & report 7a7 ,/udy 7#a7 ,9 g5]al ,! ,f$]al bank+ ag5cies %all jo9tly conduct a quantitative impact /udy ( ! effect ( ! ,n,p,rs on ! m9imum regulatory capital requirem5ts ( insur$ depository in/itutions & insur$ depository in/itution hold+ companies4 7#b7 ,scope ( ,/udy ,z "p ( ! /udy requir$ by ?is subsection1 ! ,f$]al bank+ ag5cies %all-- 7,a7 det]m9e curr5t capital levels 7z ( ,decemb] #ca1 #bjab7 at f9ancial in/itutions cov]$ by su* report2 7,b7 sep>ately id5tify specific provisions 9-- 7i7 ! ,basel ,,iii framework devis$ by ! ,basel ,committee on ,bank+ ,sup]vision 79 ?is ,act ref]r$ to z ! ,basel ,,iii provisions72 & 7ii7 ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act1 & ( am5dm5ts made by t ,act 79 ?is ,act ref]r$ to z ! ,dodd-,frank provisions1 & collectively ) ! ,basel ,,iii provisions1 ref]r$ to z ! id5tifi$ provisions7 :i* %all include f ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act1 & ! am5dm5ts made by t ,act-- 7,i7 section #aae 7reg>d+ enhanc$ sup]vision & prud5tial /&>ds72 7,,ii7 section #afe 7reg>d+ enhanc$ sup]vision & prud5tial /&>ds72 7,,iii7 section #aff 7reg>d+ e>ly rem$iation requirem5ts72 7,,iv7 section #aga 7reg>d+ lev]age & risk-bas$ capital requirem5ts72 7,v7 section #fai 7reg>d+ prohibitions on propriet>y trad+ & c]ta9 relation%ips ) h$ge funds & private equity funds72 7,,vi7 section #ici 7reg>d+ ! removal ( /atutory ref]5ces to cr$it rat+s72 7,,vii7 section #ida 7reg>d+ regulation ( cr$it risk ret5tion & exemption ( qualifi$ resid5tial mortgages72 & 7,,viii7 section #adab 7reg>d+ safe h>bor & rebuttable presumptions = qualifi$ mortgages72 & 7,c7 e/imate & evaluate ! impact ( su* id5tifi$ provisions on affect$ ,unit$ ,/ates in/itutions 9 accordance ) ?is section4 7#c7 ,cont5ts ( /udy ,! ,f$]al bank+ ag5cies %all-- 7,a7 9 conduct+ ! /udy requir$ by ?is section1 det]m9e & e/imate ! likely cumulative impact ( ! ,n,p,rs & ! id5tifi$ provisions on requir$ regulatory capital levels1 capital quality1 asset quality1 & risk managem5t at cov]$ ,unit$ ,/ates f9ancial in/itutions2 & 7,b7 bas$ on su* f9d+s1 provide an assessm5t reg>d+-- 7i7 *anges to requir$ capital levels 9 ! aggregate1 p] asset class & in/itution size bas$ on ! ,basel ,,iii provisions1 ! ,dodd-,frank provisions1 & sep>ately1 on ! id5tifi$ provisions2 7ii7 ! aggregate increase or decrease ( total risk-weight$ asset levels = ! in/itutions to :i* ! ,advanc$ ,approa* ,,npr & ! ,/&>diz$ ,approa* ,,npr w\ld be applicable bas$ on _! size & asset class2 7iii7 :e!r ! ,n,p,rs & id5tifi$ provisions w cause capital levels at cov]$ in/itutions to fluctuate ) m frequ5cy or by great] am\nts ?an ! curr5t rules & indicate :at1 if any1 safety & s\ndness issues su* fluctuations raise = f9ancial in/itutions or ! f9ancial sy/em1 includ+ a det]m9ation ( :e!r su* fluctuations w make ! ,unit$ ,/ates f9ancial sy/em m or less safe ?an ! curr5t rules2 7iv7 :e!r ! ,n,p,rs & ! id5tifi$ provisions w result 9 ! discont9uation ( ! use ( c]ta9 risk managem5t tools by cov]$ f9ancial in/itutions & ! impact on ! safety & s\ndness ( f9ancial in/itutions & ! f9ancial sy/em2 7v7 ! cumulative impact t ! ,n,p,rs & ! id5tifi$ provisions w h on-- 7,i7 ! ,unit$ ,/ates economic gr[?1 9 g5]al1 & specifically1 on ! ,gross ,dome/ic ,product2 7,,ii7 availability & co/ ( cr$it 9 l[- & mod]ate-income areas2 & 7,,iii7 availability & co/ ( resid5tial mortgages1 home equity l9es ( cr$it1 auto loans1 /ud5t loans1 & comm]cial loans1 includ+ small bus9ess cr$it2 7vi7 ! v>iance 9 requir$ capital levels1 assets1 & asset quality betwe5 in/itutions t implem5t ! advanc$ approa*es or approa*es to risk weight+ ( assets1 z propos$ 9 ! ,advanc$ ,approa*es ,,npr1 & ^? t use ! /&>diz$ approa*1 z propos$ 9 ! ,/&>diz$ ,approa* ,,npr1 & ! impact on competition betwe5 entities us+ diff]5t approa*es2 & 7vii7 hi/orical probability ( default & loss giv5 default ( resid5tial mortgage loans & ! propos$ risk weight+s 9 ! ,/&>diz$ ,approa* ,,npr1 & :e!r su* propos$ risk weight+s are appropriately & fairly calibrat$4 7#d7 ,volunt>y p>ticipation ,9 c>ry+ out ! /udy requir$ by ?is section1 ! ,f$]al bank+ ag5cies-- 7,a7 %all rely on data available to ! ag5cies ?r\gh call reports & o!r data ga!r+ processes already employ$ by ! ,f$]al bank+ ag5cies2 & 7,b7 may seek input & p>ticipation f insur$ depository in/itutions & insur$ depository in/itution hold+ companies1 provid$ t su* reque/ %all n impose undue burd5 on p>ticipat+ in/itutions & t p>ticipation 9 ! /udy by any insur$ depository in/itutions or insur$ depository in/itution hold+ companies %all be volunt>y4 7b7 ,report 7#a7 ,9 g5]al ,n lat] ?an #i mon?s aft] ! date ( enactm5t ( ?is ,act1 ! ,f$]al bank+ ag5cies %all issue a report to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives on ! results ( ! /udy requir$ by subsection 7a74 7#b7 ,cont5ts ,! ,f$]al bank+ ag5cies %all include ! me?odologies & assumptions us$ 9 ! /udy1 z well z ! requir$ elem5ts ( ! /udy li/$ 9 subsection 7a7 9 ! report requir$ 9 ?is subsection4 #d4 ,competitive equality ,section #ijh7;a77#a7 ( ! ,int]national ,l5d+ ,sup]vision ,act ( #aihc 7#ab ,u4,s4,c4 #cijg7;a77#a77 is am5d$ by add+ at ! end ! foll[+3 ,ea* appropriate ,f$]al bank+ ag5cy %all1 consi/5t ) safety & s\ndness1 seek to ensure t any diff]5ces 9 rules implem5t+ ! capital /&>ds requir$ "u ?is section or o!r provisions ( ,f$]al law = bank+ in/itutions1 sav+s associations1 bank hold+ companies1 & sav+s & loan hold+ companies d n give competitive advantages to any class or gr\p ( su* in/itutions1 associations1 or companies1 unless requir$ by o!r ,f$]al law1 & d n und]m9e any requirem5ts = enhanc$ sup]vision & prud5tial /&>ds requir$ by section #aae ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecbe744