H.R. 3312 would amend current law to change the process and procedures for determining which bank holding companies should be designated as systemically important financial institutions (SIFIs). Under current law, all banks with consolidated assets exceeding $50 billion are automatically designated as SIFIs and are subject to additional requirements imposed by the financial regulators. H.R. 3312 would repeal the automatic designation for most banks and assign the responsibility for making such designations to the Federal Reserve.
Based on information from the federal financial regulators, CBO estimates that enacting the legislation would increase net direct spending by $53 million and increase revenues by $10 million over the next 10 years, leading to a net increase in the deficit of $43 million over the 2018-2027 period. Some of that cost would be recovered from financial institutions in years after 2027. Pay-as-you-go procedures apply because enacting the bill would affect direct spending and revenues.
CBO estimates that enacting H.R. 3312 would not increase net direct spending or on-budget deficits by more than $2.5 billion in any of the four consecutive 10-year periods beginning in 2028.
H.R. 3312 contains no intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA). The bill would increase the cost of an existing private-sector mandate on entities that pay fees to the Federal Reserve and the Financial Stability Oversight Council (FSOC), but CBO estimates that the incremental cost of the mandate would be well below the annual threshold for private-sector mandates established in UMRA ($156 million in 2017, adjusted annually for inflation).