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
Previous ArticleFCA Responds to Comments on Its Call for Input on PRIIPs Regulation
In a letter addressed to the industry, the Australian Prudential Regulation Authority (APRA) set out an updated schedule of policy priorities for the banking, insurance, and superannuation industries.
The European Commission (EC) adopted a comprehensive review package of Solvency II rules in the European Union.
The Office of the Comptroller of the Currency (OCC) issued Versions 1.0 of the "Earnings" and "Regulatory Reporting" booklets of the Comptroller's Handbook.
The European Central Bank (ECB) published results of its economy-wide climate stress test, which aimed to assess the resilience of non-financial corporates and euro area banks to climate risks.
The European Banking Authority (EBA) published a report on the use of digital platforms in the banking and payments sector in European Union.
The Hong Kong Monetary Authority (HKMA) published updates on the policy measures that were announced in context of the ongoing pandemic.
The International Swaps and Derivatives Association (ISDA), along with several other associations, submitted a joint response to the Basel Committee on Banking Supervision (BCBS) consultation on preliminary proposals for the prudential treatment of cryptoasset exposures.
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.