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Effective Bank Regulation Act

12/15/2023, 3:59 PM

Summary of Bill HR 3992

Bill 118 hr 3992, also known as the Effective Bank Regulation Act, aims to strengthen regulations on banks in the United States. The bill was introduced in the House of Representatives on September 15, 2021.

The main purpose of this bill is to enhance the oversight and regulation of banks to prevent another financial crisis like the one that occurred in 2008. The bill includes provisions that require banks to hold higher levels of capital reserves to protect against potential losses, as well as increased transparency and reporting requirements for banks.

Additionally, the bill seeks to improve consumer protection measures by enhancing the oversight of financial products and services offered by banks. This includes measures to prevent predatory lending practices and ensure that consumers are fully informed about the risks associated with financial products. Overall, the Effective Bank Regulation Act aims to create a more stable and secure banking system in the United States by strengthening regulations and oversight of banks. The bill is currently being reviewed by the House Financial Services Committee for further consideration.

Congressional Summary of HR 3992

Effective Bank Regulation Act

This bill requires the Board of Governors of the Federal Reserve System to test additional scenarios during annual stress tests. Specifically, when evaluating whether a nonbank financial company or bank holding company has the capital to absorb losses due to adverse economic conditions, the board must test for three additional scenarios, including scenarios that incorporate interest rate changes.

Current Status of Bill HR 3992

Bill HR 3992 is currently in the status of Bill Introduced since June 9, 2023. Bill HR 3992 was introduced during Congress 118 and was introduced to the House on June 9, 2023.  Bill HR 3992's most recent activity was Referred to the House Committee on Financial Services. as of June 9, 2023

Bipartisan Support of Bill HR 3992

Total Number of Sponsors
1
Democrat Sponsors
1
Republican Sponsors
0
Unaffiliated Sponsors
0
Total Number of Cosponsors
0
Democrat Cosponsors
0
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill HR 3992

Primary Policy Focus

Finance and Financial Sector

Alternate Title(s) of Bill HR 3992

Effective Bank Regulation Act
Effective Bank Regulation Act
To amend the Financial Stability Act of 2010 to require stress tests performed pursuant to that Act to evaluate for the increase and decrease of interest rates, and for other purposes.

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