Systemic Risk Designation Improvement Act of 2017

Bill 115 hr 3312, also known as the Systemic Risk Designation Improvement Act of 2017, aims to make changes to the process by which financial institutions are designated as "systemically important" by the Financial Stability Oversight Council (FSOC).

The bill proposes to raise the threshold for automatic designation from $50 billion in assets to $250 billion, meaning that only financial institutions with assets exceeding $250 billion would be subject to automatic designation. This change is intended to reduce the regulatory burden on smaller financial institutions and focus regulatory efforts on larger institutions that pose a greater risk to the financial system.

Additionally, the bill would require the FSOC to consider a broader range of factors when determining whether a financial institution should be designated as systemically important. This includes factors such as the interconnectedness of the institution with other financial entities, the complexity of the institution's operations, and the potential impact of the institution's failure on the broader financial system. Overall, the Systemic Risk Designation Improvement Act of 2017 seeks to improve the process by which financial institutions are designated as systemically important, with the goal of promoting financial stability while reducing regulatory burden on smaller institutions.