Notice of Proposed Rulemaking on Resolution Plans Required for Insured Depository Institutions with $100 Billion or More in Total Assets

Summary:

The Federal Deposit Insurance Corporation (FDIC) issued a proposal that would revise section 360.10 of the FDIC's regulations, which would require the submission of resolution plans or informational filings by covered insured depository institutions (CIDIs).

Statement of Applicability: Insured depository institutions with $50 billion or more in total assets.

Highlights:

• The proposed rule would strengthen existing requirements by requiring those CIDIs with $100 billion or more in total assets (group A CIDIs) to submit full resolution plans containing an identified strategy appropriate to the CIDI for its orderly and efficient resolution, as well as the information described in the proposed rule.
  • The proposed rule would also require CIDIs with at least $50 billion but less than $100 billion in total assets (group B CIDIs) to provide more limited resolution submissions in the form of an informational filing. The informational filing would not require development of an identified strategy for resolution nor the demonstration of capabilities necessary to produce valuations related to the FDIC’s least-cost determinations.
  • The proposed rule would amend and restate requirements with respect to informational content and capabilities, building on the prior rule, past guidance, and experience gained in past plan reviews and bank resolutions.
  • All CIDIs would be required to participate in engagement and capabilities testing regarding matters related to their resolution submissions and the information required under the proposed rule.
• The proposed rule would amend how the FDIC assesses the credibility of resolution submissions, specify requirements for engagement and capabilities testing, and clarify expectations regarding the FDIC’s review and enforcement of CIDIs’ compliance with the rule.
• The frequency of resolution submissions would change under the proposed rule to every two years, with more limited supplements for a specified subset of submission content items in the off years.
• Under the proposed rule, CIDIs’ initial filing date would be at least 270 days from the effective date of the final rule.
• Resolution plans submitted in 2022 and 2023 will be evaluated under the current rule. However, the FDIC anticipates that feedback would focus on current rule elements that would remain relevant under the rule, as proposed.
• Comments on the proposal are due by November 30, 2023.