A bill to amend the Financial Stability Act of 2010 to provide for tailoring and indexing enhanced regulations.
- Bill Number
- S. 5452
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-09-22: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-10-06T13:30:17Z
AI-Generated Summary
Purpose This legislation amends the Financial Stability Act of 2010 to raise certain asset-size thresholds that trigger enhanced regulatory requirements for large financial institutions and to establish a system for periodically updating those thresholds based on economic growth or inflation.
Key Provisions
- Initial threshold increases: Raises multiple asset thresholds across related laws, including from $10 billion to $15 billion, $100 billion to $150 billion, and $250 billion to $370 billion.
- Periodic adjustments (Section 177): Requires the Federal Reserve Board to review and increase covered thresholds every five years using either U.S. gross domestic product or the Consumer Price Index, with rounding rules and Federal Register publication.
- Agency review of rules (Section 178): Directs the Federal Reserve, Office of the Comptroller of the Currency, and Federal Deposit Insurance Corporation to review and adjust non-statutory thresholds in regulations implementing enhanced standards every five years.
- Study requirement: Mandates the Federal Reserve to study and select the most appropriate economic indicator for each threshold within three months of enactment.
Significant Changes to Existing Law The bill updates thresholds in the Bank Holding Company Act of 1956, the Economic Growth, Regulatory Relief, and Consumer Protection Act, the Federal Reserve Act, and multiple sections of the Financial Stability Act of 2010. It adds two new sections (177 and 178) to the Financial Stability Act that create ongoing indexing mechanisms, moving away from fixed statutory thresholds toward automatic, inflation- or growth-adjusted ones.
Potential Impacts
- Government agencies: The Federal Reserve, OCC, and FDIC must conduct periodic reviews and modify regulations, potentially increasing administrative workload.
- Financial institutions: Mid-sized banks may experience reduced regulatory burdens initially, with thresholds rising over time to reflect economic changes.
- Citizens and markets: Adjustments aim to maintain appropriate oversight while reducing compliance costs that could affect lending and financial services availability.
- International relations: No direct provisions address foreign entities or treaties, though changes could influence the competitive position of U.S. banks relative to global peers.
Main Stakeholders Affected
- Large bank holding companies and savings and loan holding companies.
- Federal banking regulators (Federal Reserve Board, OCC, FDIC).
- Congress (through required reports to House and Senate committees).
- Consumers and businesses that rely on the banking sector for credit and services.
Notable Legal, Constitutional, or Political Implications The bill operates within existing congressional authority to amend financial regulatory statutes and does not appear to raise constitutional issues. It shifts from static to dynamic thresholds, which may reduce the need for future legislative action but increases agency discretion in selecting economic indicators and applying adjustments.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-09-22: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-09-22: Introduced in Senate
Bill Versions
- To amend the Financial Stability Act of 2010 to provide for tailoring and indexing enhanced regulations. — issued 2026-09-22 — PDF (10 pages)