Resolution plans required for large banks

The Federal Deposit Insurance Corporation Board of Directors voted on a final rule that mandates resolution plans from insured depository institutions (IDIs) with total assets of $100 billion or more and informational filings from IDIs with assets between $50 billion and $100 billion. The final rule updates the current requirements concerning the content and timing of full-resolution submissions and interim supplements provided to the FDIC.

The news statement reads: “Under the rule announced, the FDIC will require large banks with total assets of at least $100 billion to submit comprehensive resolution plans that meet enhanced standards to support the FDIC’s ability to undertake an efficient and effective resolution under the Federal Deposit Insurance Act should such an institution fail.”

The final rule follows the public comment period on the proposed rule published in Sept. 2023. The rule will take effect on Oct. 1.