H.R. 2121 — Introduced in House

I 115th CONGRESS 1st Session H. R. 2121 IN THE HOUSE OF REPRESENTATIVES April 25, 2017Mr. 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. 1. Short title This Act may be cited as the Pension, Endowment, and Mutual Fund Access to Banking Act. 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.