Stress Testing Accountability and Transparency Act
Banking: New Rules for Bank Stress Tests
This bill has been approved by the House Financial Services Committee and is now waiting for further action on the House floor. It is currently moving forward in the legislative process. There are no companion bills listed at this time.
Legislative Progress
While the bill has strong support from House Republicans and the banking industry, the ban on climate-related testing makes it a target for opposition in the Senate.
Key Points
- This bill changes how the Federal Reserve checks if big banks are healthy enough to survive a financial crisis. It requires the Fed to be more open about the math and formulas they use to grade these banks.
- The Fed would have to tell the public exactly what kind of economic scenarios they are testing at least 60 days before the tests start. This gives banks and the public more time to see what the government is looking for.
- A major part of the bill stops the Fed from using these tests to look at climate change risks. The bill says the Fed cannot use its current authority to force banks to undergo climate-related stress tests.
- The bill also prevents the government from double-counting risks. This means banks would not have to set aside extra cash twice for the same potential problem, which could make it easier for them to lend money.
- Every three years, a government watchdog would study these tests to see if they are actually keeping the banking system safe and report those findings to Congress.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
Placed on the Union Calendar, Calendar No. 318.
The bill is now on the schedule for the full chamber to consider. It's in line for debate and a vote.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-366.
Ordered to be Reported (Amended) by the Yeas and Nays: 28 - 24.
The committee approved this bill and is sending it to the full chamber for a vote. This is a significant step — most bills never get this far.
Committee Consideration and Mark-up Session Held
Referred to the House Committee on Financial Services.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
Stress Testing Accountability and Transparency Act
Data Sources
Sponsor
Cosponsors
(2)Analysis generated by AI. Always verify with official sources.