MODIFICATION OF REGULATORY PROVISIONS.

SEC. 318. MODIFICATION OF REGULATORY PROVISIONS. (a) In General.— Section 39(b) of the Federal Deposit Insurance Act (12 U.S.C. 1831p–1(b), as added by section 132(a) of the Federal Deposit Insurance Corporation Improvement Act of 1991) is amended to read as follows: “(b) Asset Quality, Earnings, and Stock Valuation Standards.— Each appropriate Federal banking agency shall prescribe standards, by regulation or guideline, for all insured depository institutions relating to asset quality, earnings, and stock valuation that the agency determines to be appropriate.”. (b) Establishing Standards.— Section 39(d) of the Federal Deposit Insurance Act (12 U.S.C. 183 1p–1(d), as added by section 108 STAT. 2224132(a) of the Federal Deposit Insurance Corporation Improvement Act of 1991) is amended— (1) in the subsection heading, by striking “BY Regulation”; and (2) in paragraph (1)— (A) in the 1st sentence, by inserting “or guideline” before the period; and (B) in the 2d sentence, by inserting “or guidelines” after “Such regulations”. (c) Holding Companies Excluded From Scope of Standards.— Section 39 of the Federal Deposit Insurance Act (12 U.S.C. 1831p–1, as added by section 132(a) of the Federal Deposit Insurance Corporation Improvement Act of 1991) is amended— (1) in subsections (a), by striking “and depository institution holding companies”; and (2) in subsection (e)— (A) by striking “or company” each place such term appears; (B) in paragraphs (1)(A) and (2), by striking “or depository institution holding company”; (C) in paragraph (1)(A)— (i) by striking “or (b) the agency shall require” and inserting the following: “or (b)— “(i) if such standard is prescribed by regulation of the agency, the agency shall require”; and (ii) by striking the period at the end and inserting the following: “; and “(ii) if such standard is prescribed by guideline, the agency may require the institution to submit a plan described in clause (i).”; and (D) in paragraph (1)(C)(i), by striking “and companies”. (d) Effective Date.— The amendments made by this section shall be construed to have the same effective date as section 39 of the Federal Deposit Insurance Act, as provided in section 132(c) of the Federal Deposit Insurance Corporation Improvement Act of 1991.