The Board of Governors of the Federal Reserve System (FED) and the Federal Deposit Insurance Corporation (collectively US Agencies) released public sections of the resolution plans of eight large domestic banks. These US Agencies generally require Title I Resolution Plans from U.S. bank holding companies and foreign banking organizations with USD 250 billion or more in assets or USD 100 billion in assets. The resolution plans are required by the Dodd-Frank Act and commonly known as living wills.
The resolution plans describe a company’s strategy for rapid and orderly resolution under bankruptcy in the event of material financial distress or failure. Eight banks were required to submit targeted resolution plans by July 01, 2021. Out of the eight banks, five banks have (US nonbank) assets of USD 250 billion or more: Bank of America Corporation, Citigroup Inc, The Goldman Sachs Group, Inc, JPMorgan Chase & Co, and Morgan Stanley. The other three banks are The Bank of New York Mellon Corporation, State Street Corporation, and Wells Fargo & Company. By regulation, resolution plans must be divided into public and confidential sections. To foster transparency, the agencies have required each firm’s public section to summarize certain elements of the resolution plan and this public section information has now been disclosed.
Keywords: Americas, US, Banking, Resolution Planning, Dodd-Frank Act, Basel, Large Banks, Resolution Framework, US Agencies
Previous ArticleFCA Sets Out Principles for Disclosure of ESG and Sustainable Funds
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards
The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.
The Basel Committee on Banking Supervision (BCBS) launched consultation on a Pillar 3 disclosure framework for climate-related financial risks, with the comment period ending on February 29, 2024.
The U.S. President Joe Biden signed an Executive Order, dated October 30, 2023, to ensure safe, secure, and trustworthy development and use of artificial intelligence (AI).
The Monetary Authority of Singapore (MAS) launched an integrated digital platform, Gprnt, also known as “Greenprint.”
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
The Network for Greening the Financial System (NGFS) published its latest set of long-term climate macro-financial scenarios (Phase IV) for assessing forward-looking climate risks.