The Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) have jointly announced an extension for large financial institutions to file their resolution plans, commonly known as ‘living wills.’ The deadline has been pushed back from July 1, 2024, to March 31, 2025. This move comes as the agencies work on developing new guidelines to address key challenges in orderly resolution.
Resolution plans are required by law for certain large financial institutions and detail a company’s strategy for resolving material financial distress or failure. The extension is seen as a response to public comments received in November 2023, where stakeholders requested additional time to incorporate the proposed guidance into their plans.
Agencies had previously invited public comment on proposed guidelines in August last year. The new deadline reflects the need to allow banks reasonable time to reflect the finalized guidance within their resolution plans.
The announcement follows a period of consultation with industry stakeholders and is part of the ongoing efforts to enhance the financial stability of the United States. Julianne Fisher Breitbeil from the FDIC has been identified as the contact for further inquiries regarding this matter.
This extension underscores the complexities involved in ensuring that large financial institutions have robust plans in place to navigate potential crises. The delay will provide banks with more time to refine their strategies and align them with the evolving regulatory landscape.
The Federal Reserve Board and the FDIC continue to emphasize the importance of these resolution plans as a critical component of maintaining the financial system’s stability. As the final guidelines are developed, it is expected that banks will be able to provide more detailed and comprehensive plans for orderly resolution in the event of financial distress.
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Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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