Guidance for Resolution Plan Submissions of Domestic Triennial Full Filers

As previously announced on September 19, 2023 (EventID 22850), the Board of Governors of the Federal Reserve System (FED) and Federal Deposit Insurance Corporation (FDIC) have now published in the Federal Register their proposed new Guidance for Resolution Plan Submissions of Domestic Triennial Full Filers which is intended to assist domestic banking organizations in developing their resolution plans as required under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The new guidance would specifically apply to U.S.-based triennial full filers, which are U.S.-based Category II and III banking organizations with total assets exceeding $250 billion that are not classified as global systemically important banking organizations (GSIBs). It is based on the regulators‘ review of in-scope firms‘ prior resolution plan submissions, as well as experiences dealing with stress events in the international and domestic banking systems.
In detail, the new guidance would encompass the regulator’s expectations regarding several aspects of firms‘ resolution plans for an orderly resolution under the U.S. Bankruptcy Code, if so needed. These aspects include, but are not limited to the following:
– governance mechanisms in relation to „decisions associated with entering bankruptcy“;
– ensuring sufficient capital and liquidity to facilitate an orderly resolution and corresponding planning;
– operational capabilities during resolution;
– considerations regarding derivative trading activities and other activities in this area;
– resolution planning of insured depository institutions with a multiple point of entry strategy (MPOE) (please see the „comment box“ below; and
– contents and structure of resolution plans and resolution plans for groups.
The guidance is expected to apply to resolutions plans filed beginning 2024.