ABA Applauds Bill Ending Arbitrary $50B Threshold for SIFI Status


ABA Applauds Bill Ending Arbitrary $50B Threshold for SIFI Status

The American Bankers Association today welcomed the recent introduction of the Systemic Risk Designation Improvement Act by Rep. Blaine Luetkemeyer (R-Mo.). The bill — a key part of ABA’s Blueprint for Growth — replaces the arbitrary $50 billion asset threshold for systemically important status in the Dodd-Frank Act with a more tailored, nuanced set of systemic risk indicators. Under the bill, the Fed would review a financial institution’s size, interconnectedness, global activity and complexity to determine whether it should be subject to regulation as a systemically important financial institution.
“Since the enactment of [Dodd-Frank] and its statutory size thresholds, banking regulators …

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