The FDIC formally announced that it will resume requiring resolution plans from covered insured depository institutions, lifting a moratorium in place since November 2018 while the FDIC revamped the process.
“Given the passage of time from the last submissions pursuant to the IDI Rule and the uncertain economic outlook, the FDIC will resume requiring resolution plan submissions for IDIs with $100 billion or more in assets,” the FDIC said. “No firm will be required to submit a resolution plan without at least 12 months advance notice provided to the firm.”
The agency added that it intends to continue targeted, periodic engagement with IDIs and testing of resolution capabilities. It also said it will provide further details about its “modified approach,” which it said “will provide greater utility for the agency in planning for a resolution and is expected to be less burdensome on institutions subject to the rule.”