This story appeared in Bank Digest.
The House of Representatives has passed two bipartisan bills from the House Financial Services Committee that improve stress test requirements for banks and reform the designation process for nonbank financial institutions, according to a committee press release. Specifically, the House passed the Financial Stability Oversight Council Improvement Act of 2017 (H.R. 4061) by a vote of 297 to 121 and the Stress Test Improvement Act of 2017 (H.R. 4293) by a vote of 245 to 174.
According to the release, H.R. 4061 would enhance the transparency and procedural fairness of the Financial Stability Oversight Council's nonbank systemically important financial institution designation process. H.R. 4293 would streamline the current regime for stress testing banks, make the company-run stress test an annual exercise, and reduce the number of supervisory scenarios from three to two. The bill would also limit the ability of the Federal Reserve Board to object to a company's capital plan based solely on qualitative deficiencies, the release said.