House Passes Bill Ending Arbitrary $50B Threshold for SIFI Status

The House today passed H.R. 3312, the Systemic Risk Designation Improvement Act of 2017, by a bipartisan vote of 288 to 130.

A key part of the American Bankers Association’s Blueprint for Growth, the bill—introduced by Rep. Blaine Luetkemeyer (R-Mo.) and co-sponsored by Reps. Kyrsten Sinema (D-Ariz.), Roger Williams (R-Texas), David Scott (D-Ga.), French Hill (R-Ark.), Josh Gottheimer (D-N.J.), Ted Budd (R-N.C.), Steve Stivers (R-Ohio) and Gregory Meeks (D-N.Y.)—replaces the arbitrary $50 billion asset threshold for systemically important status in the Dodd-Frank Act with a more tailored, nuanced set of systemic risk indicators.

Under the bill, the Federal Reserve would review a financial institution’s size, interconnectedness, global activity and complexity to determine whether it should be subject to regulation as a systemically important financial institution. ABA applauded the bill’s passage, having noted in previous comments that “the most effective and value-added supervision regime is one that is risk-based and individually tailored, taking into account a wide variety of factors.”


About Author

Monica C. Meinert

Monica C. Meinert is deputy editor of the ABA Banking Journal and editorial director at the American Bankers Association, where she oversees ABA Daily Newsbytes.