What This Bill Does
This bill requires the Secretary of the Treasury to identify banks that are critically important to key sectors of the U.S. economy. Once identified, these banks must receive stricter oversight from federal banking regulators.
Who It Affects
Banks and credit unions that the Secretary of the Treasury designates as "sectorially critical" (critically important to specific sectors of the economy). Federal banking agencies including the Federal Reserve, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration.
Key Provisions
- The Secretary of the Treasury, after consulting with banking regulators, will identify which banks are critically important to sectors of the U.S. economy and label them as "sectorially critical." (Sec. 2(a))
- Federal banking agencies must apply stricter regulatory oversight to banks designated as sectorially critical, with the specific level of oversight determined by the appropriate banking agency. (Sec. 2(b))
What Changes
If this becomes law, certain banks will face higher levels of regulatory supervision based on their importance to critical economic sectors. Federal banking agencies will have the authority to determine what "higher level" supervision means for each designated bank.
Important Definitions
- "Sectorially critical" means a bank is systemically important (critically necessary for stability) to a critical sector of the U.S. economy
- "Banking institution" includes deposit-taking institutions and credit unions
- "Credit union" includes both Federal and State credit unions
Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION H. R. 1663
To require the Secretary of the Treasury to designate sectorially critical
banking institutions, to require a higher level of regulatory supervision
of such institutions, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 17, 2023
Mr. TORRES of New York introduced the following bill; which was referred
to the Committee on Financial Services
A BILL
To require the Secretary of the Treasury to designate
sectorially critical banking institutions, to require a high-
er level of regulatory supervision of such institutions,
and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Critical Bank Review
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Act’’.
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•HR 1663 IH
SEC. 2. DESIGNATION OF SECTORIALLY CRITICAL BANKING
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INSTITUTIONS.
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(a) DESIGNATION.—The Secretary of the Treasury,
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in consultation with the banking regulators, shall des-
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ignate a banking institution as ‘‘sectorially critical’’ if the
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banking institution is systemically important to a critical
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sector of the economy of the United States.
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(b) SUPERVISION OF SECTORIALLY CRITICAL BANK-
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ING INSTITUTIONS.—The appropriate Federal banking
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agency shall apply a higher level of regulatory supervision
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with respect to a sectorially critical banking institution,
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as determined appropriate by the appropriate Federal
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banking agency.
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(c) DEFINITIONS.—In this section:
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(1) APPROPRIATE
FEDERAL
BANKING
AGEN-
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CY.—The term ‘‘appropriate Federal banking agen-
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cy’’—
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(A) has the meaning given that term under
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section 3 of the Federal Deposit Insurance Act;
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and
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(B) means the National Credit Union Ad-
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ministration, in the case of a credit union.
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(2) BANKING INSTITUTION.—The term ‘‘bank-
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ing institution’’ means—
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•HR 1663 IH
(A) a depository institution (as defined
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under section 3 of the Federal Deposit Insur-
2
ance Act); and
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(B) a credit union.
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(3) CREDIT UNION.—The term ‘‘credit union’’
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means a Federal credit union or a State credit
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union, as such terms are defined, respectively, under
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section 101 of the Federal Credit Union Act.
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(4) FEDERAL BANKING AGENCIES.—The term
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‘‘Federal banking agencies’’ means the Board of
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Governors of the Federal Reserve System, the
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Comptroller of the Currency, the Federal Deposit
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Insurance Corporation, and the National Credit
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Union Administration.
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Æ
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