Vote Smart's Synopsis:

Vote to pass a bill that amends the Dodd-Frank Wall Street Reform and Consumer Protection Act to modify testing requirements applicable to bank holding companies and certain nonbank financial companies.

Highlights:

• Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act to decrease the number of supervisory scenario stress tests as mandated by federal regulators from 3 to 2 (Sec. 2).

• Authorizes bank holding companies to conduct stress tests on an annual rather than semiannual basis (Sec. 2).

• Defines “stress test” as a financial analysis performed internally by a financial institution or done externally by a regulator to assess if a bank can withstand stressful economic conditions (Sec. 2).

• Prohibits the Federal Reserve Board from objecting to a bank holding company’s capital plan on the sole basis of qualitative deficiencies when completing a company’s capital plan and CCAR (Sec. 2).

• Defines “CCAR” as the Comprehensive Capital Analysis and Review as established by the Board of Governors (Sec. 2).

Full Bill Text

Full Bill Text