HR6553-119

What This Bill Does

The TIER Act raises several banking and financial-stability asset thresholds to account for historical growth in current-dollar U.S. GDP. It amends Federal Reserve Act assessment thresholds by replacing $100 billion with $150 billion and replacing the $100 billion to $250 billion range with $150 billion to $370 billion. It raises a Bank Holding Company Act merchant-banking-related $10 billion threshold to $15 billion. It amends multiple Financial Stability Act thresholds by replacing $250 billion with $370 billion, replacing $100 billion with $150 billion in enhanced prudential standards, and replacing $50 billion with $75 billion in certain stress-test or related provisions.

The bill then adds future indexing. New section 177 of the Financial Stability Act requires the Federal Reserve Board, by April 1, 2031 and every five years after that, to increase covered statutory thresholds by the ratio of current-dollar U.S. GDP to the calendar-year value preceding April 1, 2026, if that ratio is greater than one. Amounts of $100 billion or more are rounded up to the nearest $50 billion; lower amounts are rounded up to the nearest $5 billion. New section 178 requires the Federal Reserve, OCC, and FDIC to review regulations implementing section 165 or cross-referencing Federal Reserve section 165 regulations by June 30, 2026 and every five years afterward, and to modify nonstatutory asset or quantitative thresholds using current-dollar U.S. GDP, seeking uniform thresholds where feasible and using Department of Commerce GDP values.

Who Benefits and How

Regional banks near the old $100 billion and $250 billion thresholds benefit because higher thresholds may reduce or delay enhanced prudential, assessment, or stress-testing burdens. Savings and loan holding companies near covered thresholds benefit from the same upward adjustments. Bank holding companies near $50 billion, $100 billion, and $250 billion thresholds benefit from GDP-indexed thresholds that rise over time. Financial companies subject to stress testing benefit if thresholds move upward with GDP. Banking trade associations benefit from a repeatable indexing method rather than one-off statutory threshold fights.

Who Bears the Burden and How

Federal Reserve Board staff must calculate statutory threshold adjustments and publish notice within five days of adjustment years. OCC regulatory staff must review covered regulations and modify nonstatutory thresholds every five years. FDIC regulatory staff must perform the same review and adjustment for applicable regulations. Department of Commerce GDP data become the benchmark for calculations, increasing reliance on current-dollar GDP values. Financial stability watchdogs may face reduced coverage of mid-sized firms as thresholds rise. Consumers and borrowers could face indirect risk if less stringent oversight applies to growing regional banks.

Key Provisions

• Raises Federal Reserve Act assessment thresholds from $100 billion to $150 billion and from $100-$250 billion to $150-$370 billion.
• Raises a Bank Holding Company Act $10 billion threshold to $15 billion.
• Raises multiple Financial Stability Act $250 billion thresholds to $370 billion.
• Raises selected $100 billion and $50 billion thresholds to $150 billion and $75 billion.
• Requires future five-year statutory threshold indexing based on current-dollar U.S. GDP.
• Requires rounding up to the nearest $50 billion for large thresholds and nearest $5 billion for smaller thresholds.
• Requires Federal Reserve, OCC, and FDIC review of covered regulatory thresholds by June 30, 2026 and every five years afterward.
• Requires agencies to seek uniform thresholds where feasible and use Department of Commerce GDP data.