U.S. Banking Regulators Differ Over FDIC Proposal To Ease Resolution Plan Rules

Differences have emerged between senior U.S. banking regulators over a proposal by the Federal Deposit Insurance Corporation (FDIC) to reduce resolution planning requirements for large banks.

The FDIC Board has proposed raising the asset threshold for banks required to submit resolution plans from USD 50 billion to USD 100 billion. The proposal would also reduce filing frequency for affiliates of global systemically important banks from once every two years to once every three years, while removing several reporting requirements. FDIC Chairman Travis Hill has supported the proposal as part of a broader effort to simplify regulatory requirements. Comptroller of the Currency Jonathan Gould also voted in favour but said the proposal should go further by reviewing whether some information requirements, including those related to digital asset activities, remain necessary.

The proposed rule is open for public comment before the FDIC decides on its final form. If adopted, it would reduce compliance requirements for many large U.S. banks while shifting the FDIC’s focus toward information considered essential for bank resolution planning.