The Financial Stability Board will continue to focus its efforts in 2023 on bank resolution preparedness, and completing resolution frameworks for central counterparties and insurers, according to the group’s resolution report.
The Federal Reserve and FDIC announced Wednesday that the eight largest U.S. banks did not have deficiencies in their most recent resolution plans, also known as living wills.
The Federal Reserve and the FDIC will issue guidance on so-called “living wills” for banks that are considered “Category II” or “Category III” firms under the Fed’s tailored enhanced prudential standards, the agencies said late Friday.
Speaking at an industry event today, Acting Comptroller Michael Hsu warned that “there is a gap with regards to large regional banks” when it comes to resolvability, and signaled his desire for additional reforms to ensure financial stability in the event of a large regional bank failure.
The Federal Housing Finance Agency today finalized a rule requiring Fannie Mae and Freddie Mac to develop resolution plans to facilitate their rapid and orderly resolution in the event that the FHFA is appointed receiver—similar to the resolution plans that the nation’s largest banks are required to develop.
In two comment letters to the Federal Housing Finance Agency last week, the American Bankers Association weighed in on proposed changes to liquidity requirements for Fannie Mae and Freddie Mac, as well as proposed changes to resolution planning requirements for the two GSEs.
A new rule proposed by the Federal Housing Finance Agency today would require Fannie Mae and Freddie Mac to develop resolution plans to facilitate their rapid and orderly resolution in the event that the FHFA is appointed receiver.
The FDIC and Federal Reserve today finalized guidance for the resolution plans submitted by certain foreign banking organizations starting with the 2021 round of “living wills.”
Regulatory reforms adopted by the world’s largest banks have bolstered the financial system’s ability to absorb the sudden economic shocks of the coronavirus pandemic, Federal Reserve Vice Chairman for Supervision Randal Quarles, who also chairs the Financial Stability Board, said in a speech today.
The FDIC and the Federal Reserve today provided information to eight large financial institutions to guide their targeted resolution plan submissions, which are due July 1, 2021.