text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Systemic Risk Designation 
  Improvement Act of 2017''.
  
  SEC. 2. REVISIONS TO COUNCIL AUTHORITY.
  
      (a) Purposes and Duties.--Section 112 of the Dodd-Frank Wall Street 
  Reform and Consumer Protection Act (12 U.S.C. 5322) is amended in 
  subsection (a)(2)(I) by inserting before the semicolon ``, which have 
  been identified as global systemically important bank holding companies 
  pursuant to section 217.402 of title 12, Code of Federal Regulations, 
  or subjected to a determination under subsection (l) of section 165''.
      (b) Enhanced Supervision.--Section 115 of the Dodd-Frank Wall 
  Street Reform and Consumer Protection Act (12 U.S.C. 5325) is amended--
              (1) in subsection (a)(1), by striking ``large, 
          interconnected bank holding companies'' and inserting ``bank 
          holding companies which have been identified as global 
          systemically important bank holding companies pursuant to 
          section 217.402 of title 12, Code of Federal Regulations, or 
          subjected to a determination under subsection (l) of section 
          165''; and
              (2) in subsection (a)(2)--
                      (A) in subparagraph (A), by striking ``; or'' at 
                  the end and inserting a period;
                      (B) by striking ``the Council may'' and all that 
                  follows through ``differentiate'' and inserting ``the 
                  Council may differentiate''; and
                      (C) by striking subparagraph (B).
      (c) Reports.--Section 116(a) of the Dodd-Frank Wall Street Reform 
  and Consumer Protection Act (12 U.S.C. 5326(a)) is amended by striking 
  ``with total consolidated assets of $50,000,000,000 or greater'' and 
  inserting ``which has been identified as a global systemically 
  important bank holding company pursuant to section 217.402 of title 12, 
  Code of Federal Regulations, or subjected to a determination under 
  subsection (l) of section 165''.
      (d) Mitigation.--Section 121(a) of the Dodd-Frank Wall Street 
  Reform and Consumer Protection Act (12 U.S.C. 5331) is amended by 
  striking ``with total consolidated assets of $50,000,000,000 or more'' 
  and inserting ``which has been identified as a global systemically 
  important bank holding company pursuant to section 217.402 of title 12, 
  Code of Federal Regulations, or subjected to a determination under 
  subsection (l) of section 165''.
      (e) Office of Financial Research.--Section 155 of the Dodd-Frank 
  Wall Street Reform and Consumer Protection Act (12 U.S.C. 5345) is 
  amended in subsection (d) by striking ``with total consolidated assets 
  of 50,000,000,000 or greater'' and inserting ``which have been 
  identified as global systemically important bank holding companies 
  pursuant to section 217.402 of title 12, Code of Federal Regulations, 
  or subjected to a determination under subsection (l) of section 165''.
  
  SEC. 3. REVISIONS TO BOARD AUTHORITY.
  
      (a) Acquisitions.--Section 163 of the Dodd-Frank Wall Street Reform 
  and Consumer Protection Act (12 U.S.C. 5363) is amended by striking 
  ``with total consolidated assets equal to or greater than 
  $50,000,000,000'' each place such term appears and inserting ``which 
  has been identified as a global systemically important bank holding 
  company pursuant to section 217.402 of title 12, Code of Federal 
  Regulations, or subjected to a determination under subsection (l) of 
  section 165''.
      (b) Management Interlocks.--Section 164 of the Dodd-Frank Wall 
  Street Reform and Consumer Protection Act (12 U.S.C. 5364) is amended 
  by striking ``with total consolidated assets equal to or greater than 
  $50,000,000,000'' and inserting ``which has been identified as a global 
  systemically important bank holding company pursuant to section 217.402 
  of title 12, Code of Federal Regulations, or subjected to a 
  determination under subsection (l) of section 165''.
      (c) Enhanced Supervision and Prudential Standards.--Section 165 of 
  the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 
  U.S.C. 5365) is amended--
              (1) in subsection (a), by striking ``with total 
          consolidated assets equal to or greater than $50,000,000,000'' 
          and inserting ``which have been identified as global 
          systemically important bank holding companies pursuant to 
          section 217.402 of title 12, Code of Federal Regulations, or 
          subjected to a determination under subsection (l)'';
              (2) in subsection (a)(2)--
                      (A) by striking ``(A) In general.--'';
                      (B) in subparagraph (A), by striking ``may'' and 
                  inserting ``shall''; and
                      (C) by striking subparagraph (B);
              (3) in subsection (j), by striking ``with total 
          consolidated assets equal to or greater than $50,000,000,000'' 
          and inserting ``which has been identified as a global 
          systemically important bank holding company pursuant to section 
          217.402 of title 12, Code of Federal Regulations, or subjected 
          to a determination under subsection (l)''.
      (d) Advanced Tailoring.--Section 165 of the Dodd-Frank Wall Street 
  Reform and Consumer Protection Act (12 U.S.C. 5365) is amended by 
  adding at the end the following:
      ``(l) Additional Bank Holding Companies Subject to Enhanced 
  Supervision and Prudential Standards by Tailored Regulation.--
              ``(1) Determination.--The Board of Governors may, within 
          the limits of its existing resources--
                      ``(A) determine that a bank holding company that 
                  has not been identified as a global systemically 
                  important bank holding company pursuant to section 
                  217.402 of title 12, Code of Federal Regulations, shall 
                  be subject to certain enhanced supervision or 
                  prudential standards under this section, tailored to 
                  the risks presented, based on the considerations in 
                  paragraph (3), where material financial distress at the 
                  bank holding company, or the nature, scope, size, 
                  scale, concentration, interconnectedness, or mix of the 
                  activities of the individual bank holding company, 
                  could pose a threat to the financial stability of the 
                  United States; or
                      ``(B) by regulation determine that a category of 
                  bank holding companies that have not been identified as 
                  global systemically important bank holding companies 
                  pursuant to section 217.402 of title 12, Code of 
                  Federal Regulations, shall be subject to certain 
                  enhanced supervision or prudential standards under this 
                  section, tailored to the risk presented by the category 
                  of bank holding companies, based on the considerations 
                  in paragraph (3), where material financial distress at 
                  the category of bank holding companies, or the nature, 
                  scope, size, scale, concentration, interconnectedness, 
                  or mix of the activities of the category of bank 
                  holding companies, could pose a threat to the financial 
                  stability of the United States.
              ``(2) Council approval of regulations with respect to 
          categories.--Notwithstanding paragraph (1)(B), a regulation 
          issued by the Board of Governors to make a determination under 
          such paragraph (1)(B) shall not take effect unless the Council, 
          by a vote of not fewer than \2/3\ of the voting members then 
          serving, including an affirmative vote by the Chairperson, 
          approves the metrics used by the Board of Governors in 
          establishing such regulation.
              ``(3) Considerations.--In making any determination under 
          paragraph (1), the Board of Governors shall consider the 
          following factors:
                      ``(A) The size of the bank holding company.
                      ``(B) The interconnectedness of the bank holding 
                  company.
                      ``(C) The extent of readily available substitutes 
                  or financial institution infrastructure for the 
                  services of the bank holding company.
                      ``(D) The global cross-jurisdictional activity of 
                  the bank holding company.
                      ``(E) The complexity of the bank holding company.
              ``(4) Consistent application of considerations.--In making 
          a determination under paragraph (1), the Board of Governors 
          shall ensure that bank holding companies that are similarly 
          situated with respect to the factors described under paragraph 
          (3), are treated similarly for purposes of any enhanced 
          supervision or prudential standards applied under this section.
              ``(5) Use of currently reported data to avoid unnecessary 
          burden.--For purposes of making a determination under paragraph 
          (1), the Board of Governors shall make use of data already 
          being reported to the Board of Governors, including from 
          calculating a bank holding company's systemic indicator score, 
          in order to avoid placing an unnecessary burden on bank holding 
          companies.''.
      (e) Systemic Identification.--Section 165 of the Dodd-Frank Wall 
  Street Reform and Consumer Protection Act (12 U.S.C. 5365), as amended 
  by subsection (d), is further amended by adding at the end the 
  following:
      ``(m) Systemic Identification.--With respect to the identification 
  of bank holding companies as global systemically important bank holding 
  companies pursuant to section 217.402 of title 12, Code of Federal 
  Regulations, or subjected to a determination under subsection (l), the 
  Board of Governors shall--
              ``(1) publish, including on the Board of Governors's 
          website, a list of all bank holding companies that have been so 
          identified, and keep such list current; and
              ``(2) solicit feedback from the Council on the 
          identification process and on the application of such process 
          to specific bank holding companies.''.
      (f) Conforming Amendment.--The second subsection (s) (relating to 
  ``Assessments, Fees, and Other Charges for Certain Companies'') of 
  section 11 of the Federal Reserve Act (12 U.S.C. 248) is amended--
              (1) by redesignating such subsection as subsection (t); and
              (2) in paragraph (2)(A), by striking ``having total 
          consolidated assets of $50,000,000,000 or more'' and inserting 
          ``which have been identified as global systemically important 
          bank holding companies pursuant to section 217.402 of title 12, 
          Code of Federal Regulations, or subjected to a determination 
          under subsection (l) of section 165 of the Dodd-Frank Wall 
          Street Reform and Consumer Protection Act''.
  
  SEC. 4. RULE OF CONSTRUCTION.
  
      Nothing in this Act or the amendments made by this Act shall be 
  construed to prohibit the Board of Governors of the Federal Reserve 
  System from prescribing enhanced prudential standards for any bank 
  holding company which the Board of Governors determines, based upon the 
  bank holding company's size, interconnectedness, substitutability, 
  global cross-jurisdictional activity, and complexity, could pose a 
  safety and soundness risk to the stability of the United States banking 
  or financial system but has not been designated as a global 
  systemically important bank holding company.
  
  SEC. 5. EFFECTIVE DATE.
  
      The amendments made by this Act shall take effect after the end of 
  the 1-year period following the date of the enactment of this Act.
target: Systemic Risk Designation Improvement Act of 2017 This bill amends the Dodd-Frank Wall Street Reform and Consumer Protection Act to allow the Federal Reserve Board (FRB) to subject a bank holding company to enhanced supervision if: (1) the company has been identified as a global systemically important company; or (2) the risk of the company's financial distress, or the nature of the company's activities, could pose a threat to the financial stability of the United States. Currently, companies are subject to this type of oversight if they possess at least $50 billion in assets or are a nonbank financial company under the FRB's supervision.  The Financial Stability Oversight Council must approve of any metrics used by the FRB in determining by regulation that a category of bank holding companies is subject to enhanced supervision. Under this bill, companies subject to enhanced supervision may be required to limit mergers and acquisitions, restrict products offered, or maintain a certain debt ratio. The FRB must publish the list of companies that have been identified as requiring enhanced supervision.
feat_title: Systemic Risk Designation Improvement Act of 2017