The Federal Deposit Insurance Corporation approved a proposed rule to recast the resolution submission regime for insured depository institutions, shifting it toward a narrower set of operational information the agency says is most useful for resolving a failed bank in a cost-effective manner. The proposal would raise the asset threshold for coverage from USD 50 billion to USD 100 billion, add automatic future threshold adjustments through an indexing method, and move all covered institutions to a single three-year filing cycle. Separately, while the rulemaking is pending, the board approved an exemption from October 2026 and 2027 filing requirements for all institutions subject to the current rule. The proposal would eliminate more than half of the current content requirements and remove several core features of the existing framework, including separate submission tracks for different size groups, interim supplements, public sections, credibility assessments and capabilities testing. In place of bank-generated hypothetical failure scenarios, resolution strategies and valuation analyses, submissions would center on operational data such as organizational structure, affiliate interconnections, deposit activities, critical services, information technology architecture and processing cut-off times, key personnel, material loan portfolios, qualified financial contract activity, non-deposit liabilities and funding sources, and digital services and products. Material changes between triennial submissions would be reported through the notice of extraordinary event process. Comments are due 60 days after publication in the Federal Register. The FDIC said initial submissions under a final rule would be due no earlier than 270 days after the rule's effective date.

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