The Federal Deposit Insurance Corp. (FDIC) published a notice of proposed rulemaking on June 25 to streamline certain resolution planning requirements applicable to large regional banks.
One of the goals of the revisions would be to tailor the requirements to focus on the most impactful information for ensuring the FDIC’s preparedness in the event an institution must be wound down in a cost-effective manner.
The proposal would also increase the asset threshold for determining whether an insured depository institutions (IDIs) should be subject to the rule from $50 billion to $100 billion, and it would implement an indexing methodology for automatic future adjustments. All covered IDIs (CIDIs) would be moved to a three-year filing cycle as well.
“Under the proposed rule, the increase in the threshold, along with the indexing of the threshold, would slow the rate that new IDIs become CIDIs,” the proposal states. “The FDIC estimates that the inflation indexing in the proposed rule would result in only one new CIDI each year over the period of analysis. For purposes of this analysis, the FDIC assumes that there is no attrition from the set of returning CIDIs each year.”
American Bankers Association (ABA) President and CEO Rob Nichols welcomed the agency’s work to streamline the resolution filing process.
“ABA has long called for reforms to ensure bank resolutions are data-driven and focused on the key operational information needed to facilitate orderly resolutions without placing unreasonable requirements on banks, and the proposal unveiled today is in that spirit,” Nichols said in a statement. “Likewise, we welcome the proposal to adjust the methodologies for deposit insurance assessments and ensure that they are indexed going forward. Further, we appreciate the FDIC’s efforts to adjust assessment rates to better reflect the level needed to build and maintain a stable Deposit Insurance Fund.”
Interested stakeholders will have 60 days to submit their comments on the proposal from its date of publication in the Federal Register.
In light of the ongoing rulemaking process, the FDIC noted it also approved an exemption from filing requirements in October 2026 and in 2027 for all IDIs subject to the current rule.