US Deposit Regulator Proposes Sweeping Changes to Bank Resolution Rules

June 26, 2026
By Mintesinot Nigussie

The US Federal Deposit Insurance Corporation has proposed major changes to resolution planning rules for large banks, aiming to simplify reporting requirements while improving the agency’s ability to manage potential bank failures.

The FDIC Board of Directors approved a proposal on June 25 that would revise requirements currently applied to insured depository institutions with at least 50 billion US dollars in assets. The proposal would increase the threshold to 100 billion US dollars and introduce automatic future adjustments based on an indexing formula.

The proposed framework would move covered banks to a three-year filing cycle and replace interim updates with notices of extraordinary events when major changes occur.

The FDIC said the changes would remove more than half of existing reporting requirements, including detailed hypothetical resolution scenarios, strategy assessments and analysis of potential obstacles and mitigation measures.

The proposal would also eliminate requirements for banks to demonstrate resolution capabilities and conduct capability testing, as well as remove the FDIC’s credibility assessments of submissions and related findings such as “material weaknesses” and “significant findings.”

Instead, the regulator said it would focus on operational information needed for resolution planning, including financial data, corporate structures, key personnel, technology systems, deposit activities and qualified financial contracts.

The FDIC also proposed removing the public portion of resolution submissions, reflecting a shift away from bank-generated strategy analysis toward information directly supporting the regulator’s preparedness.

The agency said banks currently covered by the existing rule would not be required to submit filings in October 2026 or 2027 while the proposal is under review.

Comments on the proposed rule will be accepted for 60 days after publication in the Federal Register. If adopted, the new requirements would apply to initial submissions due no earlier than 270 days after the final rule takes effect.

Source: FSX Business News