FDIC proposes simpler resolution filings for large banks
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Table of Contents
The Federal Deposit Insurance Corporation is proposing a new rule that would change how big banks prepare for failure. Currently, banks with at least $100 billion in assets must submit detailed resolution plans, while those between $50 billion and $100 billion file less extensive informational reports. This proposal raises the threshold to $100 billion for both categories, effectively merging them into a single set of requirements for larger institutions.
Why it matters: This change reduces the compliance burden for large banks by removing requirements that the FDIC says are less useful during an actual resolution. It also adjusts the dollar thresholds to account for inflation since the original rules were written in 2012, ensuring the regulations apply to the correct size of institutions without needing constant manual updates.
Who it affects
- Insured depository institutions with $100 billion or more in total assets
This is a proposed rule from the Federal Deposit Insurance Corporation published in the Federal Register, so readers should check the original document for full details before relying on this summary.
Agency: Federal Deposit Insurance Corporation
Source: Federal Register — read the official document