FDIC Chair Provides Resolution Planning Updates

FDIC Chair Jelena McWilliams highlighted recent regulatory developments and additional work concerning resolution planning for large institutions in a cross-border context.

In a speech before the Institute of International Finance Bank Policy Institute, Ms. McWilliams noted recent progress in improving the resolution-planning process and reducing its burdens, such as:

• U.S. global systemically important banks ("G-SIBs") developing a single-point-of-entry resolutions strategy to preserve operations of key subsidiaries if the parent enters bankruptcy proceedings;
• Congress raising the statutory threshold for resolution planning from $50 to $250 billion;
• U.S. prudential regulators' proposal to allow (i) firms to submit "targeted" rather than "full" plans and (ii) U.S. G-SIBs to submit resolution plans every two years, alternating between targeted and full plans;