FDIC Approves Final Guidance for Bank Resolution Plans
Delay in Submission Deadline
The Federal Deposit Insurance Corporation (FDIC) Board of Directors has approved final guidance for large banks to submit resolution plans, also known as living wills. However, the guidance delays the deadline for submitting these plans.
Expectations for Resolution
The guidance outlines expectations for both single- and multiple-point-of-entry resolution strategies for banks with over $250 billion in assets. These plans detail how banks will resolve themselves quickly and orderly in the event of financial distress.
Federal Reserve's Additional Guidance
The Federal Reserve has also issued guidance for larger U.S. banks, requiring them to develop living wills that describe their plans for resolution.
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