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U.S. GOVERNMENT
INFORMATION
Gp
115TH CONGRESS REPORT
2d Session HOUSE OF REPRESENTATIVES 115-574
TO PLACE REQUIREMENTS ON OPERATIONAL RISK CAPITAL REQUIRE-
MENTS FOR BANKING ORGANIZATIONS ESTABLISHED BY AN APPRO-
PRIATE FEDERAL BANKING AGENCY
FEBRUARY 23, 2018.-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. HENSARLING, from the Committee on Financial Services,
submitted the following
REPORT
together with
MINORITY VIEWS
[To accompany H.R. 4296]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred the
bill (H.R. 4296) to place requirements on operational risk capital
requirements for banking organizations established by an appro-
priate Federal banking agency, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the following:
SECTION 1. OPERATIONAL RISK CAPITAL REQUIREMENTS FOR BANKING ORGANIZATIONS.
(a) IN GENERAL.-An appropriate Federal banking agency may not establish an
operational risk capital requirement for banking organizations, unless such require-
ment-
(1) is based primarily on the risks posed by a banking organization's current
activities and businesses;
(2) is appropriately sensitive to the risks posed by such current activities and
businesses;
(3) is determined under a forward-looking assessment of potential losses that
may arise out of a banking organization's current activities, businesses, and ex-
posures, which is not solely based on a banking organization's historical losses;
and
(4) permits adjustments based on qualifying operational risk mitigants.
(b) DEFINITIONS.-For purposes of this section:
(1) APPROPRIATE FEDERAL BANKING AGENCY.-The term appropriate Federal
banking agency-
(A) has the meaning given such term under section 3 of the Federal De-
posit Insurance Act; and
79-006](ViewImageLocal?handle=hein.congrecreports/crptxabaz0001&div=1&collection=&method=preview&ext=.png&size=3)