IMPROVING CAPITAL STANDARDS.

SEC. 305. IMPROVING CAPITAL STANDARDS. (a) Periodic Review of Capital Standards Generally.— Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding at the end the following new subsection: “(o) Periodic Review of Capital Standards.— Each appropriate Federal banking agency shall, in consultation with the other Federal banking agencies, biennially review its capital standards for insured depository institutions to determine whether those stand-105 STAT. 2355ards require sufficient capital to facilitate prompt corrective action to prevent or minimize loss to the deposit insurance funds, consistent with section 38.”. (b) Review of Risk-Based Capital Standards.— (1) In general.— Each appropriate Federal banking agency shall revise its risk-based capital standards for insured depository institutions to ensure that those standards— (A) take adequate account of— (i) interest-rate risk; (ii) concentration of credit risk; and (iii) the risks of nontraditional activities; and (B) reflect the actual performance and expected risk of loss of multifamily mortgages. (2) International discussions.— The Federal banking agencies shall discuss the development of comparable standards with members of the supervisory committee of the Bank for International Settlements. (3) Deadline for prescribing revised standards.— Each appropriate Federal banking agency shall— (A) publish final regulations in the Federal Register to implement paragraph (1) not later than 18 months after the date of enactment of this Act; and (B) establish reasonable transition rules to facilitate compliance with those regulations. (4) Definitions.— For purposes of this subsection, the terms “appropriate Federal banking agency”, “Federal banking agency” and “insured depository institution” have the same meanings as in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (c) Conforming Amendment Defining Federal Banking Agencies.— Section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) is amended by adding at the end the following: “(z) Federal Banking Agencies.— The term ‘Federal banking agencies’ means the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation.”.