Publications

On August 29, 2023, the FDIC proposed modifications to its resolution plan filing requirements for mid-sized insured depository institutions (the “IDI Proposal”), and the FDIC and Federal Reserve jointly proposed guidance on the agencies’ expectations regarding resolution plan filings by large regional bank holding companies and certain intermediate holding companies of foreign banking organizations (the “Proposed Guidance”).

The IDI Proposal would amend and restate the FDIC’s current resolution plan rule, which requires insured depository institutions (“IDIs”) with $50 billion or more in total assets to periodically to submit resolution plans to the FDIC. Since the original issuance of the rule in 2012, the FDIC has made several major modifications that culminated in a full moratorium on submissions in 2018, followed by a reinstatement of filing requirements for IDIs with $100 billion or more in total assets in January 2021. The IDI Proposal would modify the FDIC’s current filing requirements for mid-sized banks by:

• creating two groups of IDIs with different submission content requirements;
• adjusting required resolution plan filing content (including with respect to the resolution strategy), and codifying certain aspects of previously-issued guidance and feedback;
• establishing a two-prong standard by which IDI resolution submissions will be assessed;
• adjusting the frequency of IDI resolution plan submissions to a two-year cycle, which will include engagement and capabilities testing; and
• introducing an “interim supplement” requiring certain key content elements to be provided by all covered IDIs in the year between submissions.

The Proposed Guidance would establish expectations of the FDIC and Federal Reserve for resolution plan filings by large U.S. regional banks (those with at least $250 billion in total assets) and certain large foreign banking organizations (“FBOs”) pursuant to Section 165(d) of the Dodd-Frank Act, with a focus on key areas of potential obstacles to resolvability such as capital, liquidity, governance mechanisms, operational capabilities, legal entity rationalization and separability, derivatives and trading activities.

To read our overview of the federal banking agencies proposed rules and guidance, please click here. Additional detail regarding the proposed LTD and “clean holding company” requirements for regional banking organizations is available here.