Shielding Community Banks from Systemic Risk Assessments Act

I 118TH CONGRESS 1ST SESSION H. R. 4204 To amend the Federal Deposit Insurance Act to exempt community banks from any special assessment of the Federal Deposit Insurance Corpora- tion caused by the use of the systemic risk authority under that Act, and for other purposes. IN THE HOUSE OF REPRESENTATIVES JUNE 20, 2023 Mr. GREEN of Texas introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Federal Deposit Insurance Act to exempt community banks from any special assessment of the Federal Deposit Insurance Corporation caused by the use of the systemic risk authority under that Act, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Shielding Community 4 Banks from Systemic Risk Assessments Act’’. 5 VerDate Sep 11 2014 23:34 Jul 23, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4204.IH H4204 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •HR 4204 IH SEC. 2. SPECIAL ASSESSMENTS TO RECOVER LOSSES DUE 1 TO THE USE OF SYSTEMIC RISK AUTHORITY. 2 (a) FINDINGS.—Congress finds the following: 3 (1) Community banks, including rural banks, 4 community development financial institutions, and 5 minority depository institutions, did not cause or 6 contribute to the recent bank failures of Silicon Val- 7 ley Bank and Signature Bank, and otherwise may 8 have seen deposit outflows due to the mismanage- 9 ment of these large banks. 10 (2) The Federal Deposit Insurance Corporation 11 has broad flexibility under law to exempt community 12 banks from the special assessment that the Corpora- 13 tion will need to charge to recoup losses from the 14 use of the systemic risk exception. 15 (b) SENSE OF CONGRESS.—It is the sense of the 16 Congress that the Federal Deposit Insurance Corporation 17 should fully exempt community banks from any special as- 18 sessment to recoup losses to the Deposit Insurance Fund 19 due to the failures of Silicon Valley Bank and Signature 20 Bank and the use of the systemic risk exception. 21 (c) LIMITATIONS ON SPECIAL ASSESSMENTS RE- 22 LATED TO THE USE OF THE SYSTEMIC RISK AUTHOR- 23 ITY.—Section 13(c)(4)(G)(ii) of the Federal Deposit In- 24 surance Act (12 U.S.C. 1823(c)(4)(G)(ii)) is amended by 25 adding at the end the following: 26 VerDate Sep 11 2014 23:34 Jul 23, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4204.IH H4204 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •HR 4204 IH ‘‘(IV) EXEMPTIONS; GRADUATED 1 ASSESSMENTS.—With respect to any 2 special assessment described under 3 this clause, the Corporation shall— 4 ‘‘(aa) exempt insured deposi- 5 tory institutions and depository 6 institution holding companies 7 with less than $5,000,000,000 in 8 consolidated assets (or such high- 9 er asset amount as the Corpora- 10 tion determines appropriate); and 11 ‘‘(bb) graduate the amount 12 of such special assessments such 13 that insured depository institu- 14 tions and depository institution 15 holding companies with less than 16 $50,000,000,000 in consolidated 17 assets pay a significantly smaller 18 portion of such assessment than 19 those insured depository institu- 20 tions and depository institution 21 holding companies with 22 $50,000,000,000 or more in con- 23 solidated assets.’’. 24 Æ VerDate Sep 11 2014 23:34 Jul 23, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H4204.IH H4204 pbinns on DSKJLVW7X2PROD with $$_JOB