US Agencies (FDIC and FED) announced several resolution plan actions, including completion of their evaluations of the 2018 resolution plans for 82 foreign banks. In addition, the Agencies extended the deadline for the next resolution plans of 82 foreign banks and 15 domestic banks to July 01, 2021. This extension will give the banks additional time to prepare their plans and will help mitigate uncertainty about the filing requirements, while the US Agencies' April 2019 proposal to revise the resolution plan rule remains pending. Until the US Agencies finalize this proposal in a final rule, the current resolution plan rule continues to apply to each covered company.
The US Agencies did not identify shortcomings, which are defined as weaknesses a firm would be required to address, in the 2018 resolution plans of the 82 foreign banks. However, the Agencies are requesting additional information in the next resolution plans from seven firms—namely, HSBC Holdings Plc, BNP Paribas, Royal Bank of Canada, Banco Bilbao Vizcaya Argentaria S.A., Bank of Montreal, Banco Santander S.A., and Toronto-Dominion Bank. Additionally, the US Agencies extended the next full resolution plan submission date for four other foreign banks—Barclays PLC, Credit Suisse, Deutsche Bank AG, and UBS AG—to July 01, 2021. However, these banks are still required to submit the limited plans by July 01, 2020; the limited plans should describe how these banks have addressed the shortcomings identified in December 2018 and provide updates on certain resolution projects.
- Press Release
- Proposed Rule, April 2019
- List of 82 Foreign Banks (PDF)
- List of 15 Domestic Banks (PDF)
Keywords: Americas, US, Banking, Foreign Banks, Resolution Plans, Extension of Deadline, FED, FDIC, US Agencies
PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.
IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.
MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.
BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.
FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.
PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.
EBA published an opinion following the notification by the French macro-prudential authority, the Haut Conseil de Stabilité Financière (HCSF), of its intention to extend a measure introduced in 2018 on the use of Article 458(9) of the Capital Requirements Regulation (CRR).
As part of a Research Bulletin on the recent policy-relevant work, ECB published an article that examines the lessons learned from past crises for nonperforming loan resolution in the post COVID-19 period.
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
ECB updated the guidance notes for reporting related to the statistics on holdings of securities by reporting banking groups (SHSG).