House Committee Approves Bill to Tailor Designation of SIFIs

By a bipartisan vote of 39 to 16, the House Financial Services Committee today approved H.R. 1309, a bill strongly advocated by ABA that would eliminate the automatic designation of banks as systemically important based solely on asset size. Introduced by Rep. Blaine Luetkemeyer (R-Mo.), the bill recognizes that regulators should consider many different components of risk.

The committee also advanced — by a 56-1 vote — H.R. 2209, an ABA-backed measure that would further expand the ability of banks to count municipal securities as high-quality liquid assets under the Liquidity Coverage Ratio. Both bills are part of ABA’s Agenda for America’s Hometown Banks.