The Bank Slate


FDIC approves proposals for resolution plans, faster merger approvals

The Federal Deposit Insurance Corp. approved a proposal that adjusts how banks submit resolution plans.

The FDIC created two tiers based on a bank’s asset size – each tier has its own set of requirements.

Banks with more than $100 billion of assets must provide full “living wills” that include comprehensive resolution strategies, valuation analysis, and plans for continuity of operations.

The biggest banks must also show that they can “promptly” create virtual data rooms (VDRs) to allow for entities to place bids in the event of a failure.

Banks with $50 billion to $100 billion of assets must submit informational filings with “limited requirements” such as data and analysis to help the FDIC craft resolution strategies. These banks must show an ability to back the agency’s marketing and resolution efforts, including VDRs.

Plans for both tiers are due every three years with interim supplements required if there are notable changes.

Separately, the FDIC approved a plan designed to hasten approvals of merger applications. Going forward, outstanding applications that have been pending for more than 270 days will be automatically added to the agenda of the next FDIC board meeting. The application would remain on the agenda on a quarterly basis.

Leave a Reply

Your email address will not be published. Required fields are marked *