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Financial Services Law Insights and Observations

FDIC outlines revised approach for insured depository institution resolution planning

Agency Rule-Making & Guidance FDIC Deposit Insurance Supervision Federal Deposit Insurance Act

Agency Rule-Making & Guidance

On June 25, the FDIC announced PR-58-2021, which outlines a modified approach to implementing its rule requiring insured depository institutions (IDIs) with $100 billion or more in total assets (CIDIs) to submit resolution plans under the Federal Deposit Insurance Act. Among other things, the modified approach extends the resolution plan’s submission frequency to a three-year cycle and lays out new details regarding the FDIC’s emphasis on engagement with firms. The new approach “exempts filers from other content requirements that have been less useful or are obtainable through other supervisory channels.” In addition, on a case-by-case basis, the FDIC plans to “expressly exempt certain content requirements based on the FDIC’s evaluation of how useful or material the information would be in planning to resolve the specified CIDI.” Resolution plans will be submitted in two groups. The first group will contain IDIs whose top tier parent company is not regarded as a U.S. global systemically important bank or a category II banking organization. The second group encompass all other IDIs with $100 billion or more in total assets. For institutions with less than $100 billion in total assets, the moratorium on submission of IDI plans announced in November 2018 remains in effect.

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