Sec. 402. Supplementary leverage ratio for custodial banks
263 words·~1 min read·
/bill/115/s/2155/es/section-402A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In this section, the term custodial bank means any depository institution holding company predominantly engaged in custody, safekeeping, and asset servicing activities, including any insured depository institution subsidiary of such a holding company. In this subsection, the term central bank means— the Federal Reserve System; the European Central Bank; and central banks of member countries of the Organisation for Economic Co-operation and Development, if— the member country has been assigned a zero percent risk weight under sections 3.32, 217.32, and 324.32 of title 12, Code of Federal Regulations, or any successor regulation; and the sovereign debt of such member country is not in default or has not been in default during the previous 5 years.
The appropriate Federal banking agencies shall promulgate regulations to amend sections 3.10, 217.10, and 324.10 of title 12, Code of Federal Regulations, to specify that— subject to subparagraph (B), funds of a custodial bank that are deposited with a central bank shall not be taken into account when calculating the supplementary leverage ratio as applied to the custodial bank; and with respect to the funds described in subparagraph (A), any amount that exceeds the total value of deposits of the custodial bank that are linked to fiduciary or custodial and safekeeping accounts shall be taken into account when calculating the supplementary leverage ratio as applied to the custodial bank.
Nothing in subsection
(b)shall be construed to limit the authority of the appropriate Federal banking agencies to tailor or adjust the supplementary leverage ratio or any other leverage ratio for any company that is not a custodial bank.