Updated “frequently asked questions” (FAQs) about bank resolution plan submissions are in the offing by the federal bank deposit insurance agency, its acting board chairman said Tuesday.
In public remarks to a conference of the American Bankers Association (ABA) in Washington, Federal Deposit Insurance Corp. (FDIC) Board Acting Chairman Travis Hill said his agency will issue the FAQs about resolution plan submissions, adding that his agency will continue to require the resolution plans.
However, he said, the agency expects to waive several of the content requirements. He said that the FDIC will deemphasize and broaden the “strategy” discussion and waive the expectation that banks identify and build their plans around a hypothetical failure scenario.
“Instead, we will look for plans focused more specifically on providing the FDIC the information it needs to rapidly market the institution and, if needed, operate the institution for a short period of time,” Hill said.
In other comments, Hill told the trade group that the FDIC is:
- Regarding digital assets and blockchain, aiming to establish “establish a consistent, transparent approach to oversight of banks that provide crypto- and blockchain-related products and services, while ensuring appropriate guardrails are in place, consistent with safety and soundness standards.
- Working on a rulemaking related to reputational risk that would prohibit FDIC supervisors from (1) criticizing or taking adverse action against institutions based on reputational risk and (2) requiring, instructing, or encouraging institutions to close, modify, or refrain from offering accounts on the basis of political, social, cultural, or religious views.
- Talking to the other federal banking regulators about reforms to the capital framework, including adjustments to the supplementary leverage ratio.
- Exploring additional ideas to comprehensively put an end to “debanking.”
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