In a letter to FDIC Chairman Martin Gruenberg and Federal Reserve Vice Chairman for Supervision Randal Quarles today, ABA encouraged regulators to extend the filing date for upcoming resolution plan — or “living will” — submissions and to consider moving to a biennial schedule generally for banks that are required to submit resolution plans under the Dodd-Frank Act. Both agencies have previously acknowledged the benefits of moving to a two-year submission cycle, and the Treasury Department also recommended the move as part of its broader report on financial regulation.
ABA noted that moving to a two-year submission cycle would allow banks more time to assemble and vet the data within their living wills and to coordinate with their regulators in advance of the submission deadline. It would also allow regulators more leeway in reviewing the plans and providing guidance and feedback, the association said. Banks would still be required to inform the agencies of any changes that could materially affect their resolution plan, as they are currently required to do.
Noting that the agencies in September extended the deadline for the eight largest U.S. banks to July 1, 2019, ABA called on the agencies to extend the deadline for banks expected to file in December 2018 an additional year to Dec. 31, 2019. For more information, contact ABA’s Hu Benton.