McWilliams: FDIC Considering Multiple Changes to Resolution Planning

Commenting on the current state of large bank resolution planning at an industry event today, FDIC Chairman Jelena McWilliams today said that the FDIC is considering several policy changes to “strengthen and streamline” the large bank resolution planning process.

McWilliams expressed support for legislative efforts to establish a tailored, transparent process for large firms to be resolved through bankruptcy, and noted the FDIC is also considering changes to the Orderly Liquidation Authority to make the process more certain and transparent. She also said that the FDIC will soon issue an advanced notice of proposed rulemaking as it prepares to make changes to its rule requiring resolution plans for insured depository institutions. McWilliams noted that in light of recent actions to raise the threshold at which bank holding companies are required to submit resolution plans under the Dodd-Frank framework, “it is appropriate that we revisit that threshold” for IDIs as well.

In addition to seeking feedback on which institutions should be subject to the rule, the ANPR will also ask for comments on how to appropriately tailor the rule based on size, complexity, risk profile, and other factors, McWilliams said. She added that “for purposes of clarity, the next round of submissions under the IDI rule will not begin until this rulemaking process has been completed.”