H.R. 1596 · 118th Congress
Stabilizing Vulnerable Banks Act
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Never voted on. It didn't reach a floor vote before the 118th Congress ended, so it expired. A bill has to be introduced again to be considered in a new Congress.
D
MoultonSponsorNo cosponsors.
This bill increases the oversight of certain nonbank financial companies and bank holding companies by repealing Title IV of the Economic Growth, Regulatory Relief, and Consumer Protection Act (P.L. 115-174).
What it does: CRS summary · Introduced in House · Mar 14, 2023
Stabilizing Vulnerable Banks Act
This bill increases the oversight of certain nonbank financial companies and bank holding companies by repealing Title IV of the Economic Growth, Regulatory Relief, and Consumer Protection Act (P.L. 115-174). (A nonbank financial company is a financial institution without a banking license that may be subject to supervision due to the company's size or risk profile. A bank holding company owns a controlling interest in one or more banks.)
Specifically, the bill decreases from $250 billion to $50 billion the asset threshold at which enhanced prudential standards become mandatory, thereby requiring more companies to comply with these standards. These standards include stress testing, leverage limits, liquidity requirements, and resolution plan requirements (i.e., living will requirements). Under current law, the Federal Reserve has the discretion to determine the applicability of these standards to bank holding companies with assets between $100 billion and $250 billion.
The bill also expands stress testing by
- increasing the number of board-run stress test scenarios from two to three;
- decreasing the asset threshold at which company-run stress tests are required from $250 billion to $10 billion; and
- requiring company-run stress tests to be performed annually or semiannually, depending on the amount of assets held.
The bill also decreases from $50 billion to $10 billion the asset threshold for mandatory risk committees.
Written by the nonpartisan Congressional Research Service. All summary versions on Congress.gov
About this bill and sources
Official title: Stabilizing Vulnerable Banks Act
Latest action (Mar 14, 2023): Referred to the House Committee on Financial Services.
Policy area: Finance and Financial Sector · Origin: House · Introduced: Mar 14, 2023
Official page on Congress.gov · Bill text (GovInfo) · Status record (XML)
No recorded floor vote found.