To amend the Wall Street Transparency and Accountability Act of 2010 to provide covered banking institutions with certain exemptions related to interest rate swaps, and for other purposes.
About This Bill
Committee
Latest Action · April 29, 2024
Referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
The Bank Risk Reduction Act of 2024 would exempt banks and bank holding companies from certain federal regulations when they use interest rate swaps to protect themselves against losses from changing interest rates on their loans and securities holdings. Specifically, the bill would allow these financial institutions to avoid clearing and margin requirements for these hedging activities and would give them flexibility in how they account for these transactions on their financial statements. The legislation applies to all insured depository institutions and depository institution holding companies that engage in interest rate swaps for risk management purposes tied to their balance sheet assets. The bill does not establish any new funding requirements or timelines for implementation, as it simply removes regulatory restrictions rather than creating new programs. The measure was introduced in April 2024 and referred to the House Financial Services Committee and Agriculture Committee for consideration.
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