§ 4801. Incorporated definitions

the feasibility and appropriateness of establishing a requirement that, with respect to large insured depository institutions and depository institution holding companies the failure of which could have serious adverse effects on economic conditions or financial stability, such institutions and holding companies maintain some portion of their capital in the form of subordinated debt in order to bring market forces and market discipline to bear on the operation of, and the assessment of the viability of, such institutions and companies and reduce the risk to economic conditions, financial stability, and any deposit insurance fund;

if such requirement is feasible and appropriate, the appropriate amount or percentage of capital that should be subordinated debt consistent with such purposes; and

the manner in which any such requirement could be incorporated into existing capital standards and other issues relating to the transition to such a requirement.

Bank holding company.—

The term ‘bank holding company’ has the meaning given the term in section 2 of the Bank Holding Company Act of 1956 [12 U.S.C. 1841].

Insured depository institution.—

The term ‘insured depository institution’ has the meaning given the term in section 3(c) of the Federal Deposit Insurance Act [12 U.S.C. 1813(c)].

Subordinated debt.—

The term ‘subordinated debt’ means unsecured debt that—

the safety and soundness of insured depository institutions;

the availability of credit, particularly to individuals and small businesses; and

economic growth.

In general.—

Before the end of the 1-year period beginning on the date of enactment of this Act [

Recommendations.—

The report shall contain any recommendations with respect to capital standards that the Secretary of the Treasury may determine to be appropriate.”

the necessity, for monetary policy purposes, of continuing to require insured depository institutions to maintain sterile reserves;

the appropriateness of paying a market rate of interest to insured depository institutions on sterile reserves or, in the alternative, providing for payment of such interest into the appropriate deposit insurance fund;

the monetary impact that the failure to pay interest on sterile reserves has had on insured depository institutions, including an estimate of the total dollar amount of interest and the potential income lost by insured depository institutions; and

the impact that the failure to pay interest on sterile reserves has had on the ability of the banking industry to compete with nonbanking providers of financial services and with foreign banks.

paying a market rate of interest to insured depository institutions on sterile reserves; and

paying such interest into the respective deposit insurance funds.”

reducing the amount of credit available for such purposes or the number of persons eligible for such credit;

increasing the level of consumer inconvenience, cost, and time delays in connection with the extension of consumer and small business credit without corresponding benefit with respect to the protection of consumers or small businesses or the safety and soundness of insured depository institutions; and

increasing costs and burdens on insured depository institutions, insured credit unions, and other lenders without corresponding benefit with respect to the protection of consumers or small business concerns or to the safety and soundness of insured institutions.

In general.—

Not later than 1 year after the date of enactment of this Act [

Recommendations.—

The report required by paragraph (1) shall contain any recommendations for administrative action or statutory changes that the Secretary of the Treasury may determine to be appropriate.

whether there is a pattern of significant increases in check-related losses at depository institutions attributable to the provisions of the Expedited Funds Availability Act [12 U.S.C. 4001 et seq.]; and

whether extension of the time period referred to in subsection (a) is necessary to diminish the volume of any such check-related losses.

study the feasibility, including the costs and benefits to insured depository institutions, of establishing and maintaining a data bank for reports submitted by any depository institution to a Federal banking agency; and

report the results of such study to the Congress.

permitting depository institutions to file reports directly with the data bank; and

permitting Federal banking agencies, State bank supervisors, and the public to obtain access to any appropriate report on file with the data bank which such agency or supervisor or the public is otherwise authorized to receive.”