12 U.S.C. § 5368 — Regulations

Page 1865 TITLE 12—BANKS AND BANKING § 5371 873, which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 1811 of this title and Tables. § 5368. Regulations The Board of Governors shall have authority to issue regulations to implement parts A and C and the amendments made thereunder. Except as otherwise specified in part A or C, not later than 18 months after the effective date of this Act, the Board of Governors shall issue final regulations to implement parts A and C, and the amendments made thereunder. (Pub. L. 111–203, title I, § 168, July 21, 2010, 124 Stat. 1434.) Editorial Notes REFERENCES IN TEXT Part C, referred to in text, was in the original ‘‘sub- title C’’, meaning subtitle C (§§ 161–176) of title I of Pub. L. 111–203, July 21, 2010, 124 Stat. 1420, which is classi- fied principally to this part. For complete classifica- tion of subtitle C to the Code, see Tables. The effective date of this Act, referred to in text, is 1 day after July 21, 2010, except as otherwise specifi- cally provided in Pub. L. 111–203, see section 4 of Pub. L. 111–203, set out as an Effective Date note under sec- tion 5301 of this title. § 5369. Avoiding duplication The Board of Governors shall take any action that the Board of Governors deems appropriate to avoid imposing requirements under this part that are duplicative of requirements applicable to bank holding companies and nonbank finan- cial companies under other provisions of law. (Pub. L. 111–203, title I, § 169, July 21, 2010, 124 Stat. 1434.) Editorial Notes REFERENCES IN TEXT This part, referred to in text, was in the original ‘‘this subtitle’’, meaning subtitle C (§§ 161–176) of title I of Pub. L. 111–203, July 21, 2010, 124 Stat. 1420, which is classified principally to this part. For complete classi- fication of subtitle C to the Code, see Tables. § 5370. Safe harbor (a) Regulations The Board of Governors shall promulgate reg- ulations on behalf of, and in consultation with, the Council setting forth the criteria for ex- empting certain types or classes of U.S. nonbank financial companies or foreign nonbank financial companies from supervision by the Board of Governors. (b) Considerations In developing the criteria under subsection (a), the Board of Governors shall take into account the factors for consideration described in sub- sections (a) and (b) of section 5323 of this title in determining whether a U.S. nonbank financial company or foreign nonbank financial company shall be supervised by the Board of Governors. (c) Rule of construction Nothing in this section shall be construed to require supervision by the Board of Governors of a U.S. nonbank financial company or foreign nonbank financial company, if such company does not meet the criteria for exemption estab- lished under subsection (a). (d) Revisions (1) In general The Board of Governors shall, in consulta- tion with the Council, review the regulations promulgated under subsection (a), not less fre- quently than every 5 years, and based upon the review, the Board of Governors may revise such regulations on behalf of, and in consulta- tion with, the Council to update as necessary the criteria set forth in such regulations. (2) Transition period No revisions under paragraph (1) shall take effect before the end of the 2-year period after the date of publication of such revisions in final form. (e) Report The Chairman of the Board of Governors and the Chairperson of the Council shall submit a joint report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives not later than 30 days after the date of the issuance in final form of regulations under subsection (a), or any subse- quent revision to such regulations under sub- section (d), as applicable. Such report shall in- clude, at a minimum, the rationale for exemp- tion and empirical evidence to support the cri- teria for exemption. (Pub. L. 111–203, title I, § 170, July 21, 2010, 124 Stat. 1435.) § 5371. Leverage and risk-based capital require- ments (a) Definitions For purposes of this section, the following definitions shall apply: (1) Generally applicable leverage capital re- quirements The term ‘‘generally applicable leverage capital requirements’’ means— (A) the minimum ratios of tier 1 capital to average total assets, as established by the appropriate Federal banking agencies to apply to insured depository institutions under the prompt corrective action regula- tions implementing section 1831o of this title, regardless of total consolidated asset size or foreign financial exposure; and (B) includes the regulatory capital compo- nents in the numerator of that capital re- quirement, average total assets in the de- nominator of that capital requirement, and the required ratio of the numerator to the denominator. (2) Generally applicable risk-based capital re- quirements The term ‘‘generally applicable risk-based capital requirements’’ means— (A) the risk-based capital requirements, as established by the appropriate Federal bank- ing agencies to apply to insured depository