Fed, FDIC propose modifying resolution plan requirements for U.S., foreign banks

This story appeared in Bank Digest.

The Fed and FDIC are inviting public comment on a joint proposal to modify regulations implementing the resolution planning requirements of Section 165(d) of the Dodd-Frank Act for U.S. and foreign banking organizations.”

The rule changes are intended to conform with 2018 amendments made by the Economic Growth, Regulatory Relief, and Consumer Protection Act to the Dodd-Frank Act and to reflect desired improvements to resolution planning that the federal agencies have identified over the past several years.

Principally, the agencies’ proposal seeks to establish “risk-based categories for determining the application of the resolution planning requirement to certain U.S. and foreign banking organizations,” extend the “default resolution plan filing cycle,” and allow for “more focused resolution plan submissions.” According to the draft notice of the proposal, public comments are to be received by June 21, 2019.