The Federal Deposit Insurance Corporation has modified its approach to insured depository institution (IDI) resolution planning to concentrate submissions on the operational information it needs to resolve a large bank through a weekend sale or to operate the institution briefly while rapidly marketing it. For full resolution submissions in the upcoming submission cycle, IDIs are exempt from certain content requirements, including requirements to use a bridge bank strategy and to include a hypothetical failure scenario in the plan. Acting Chairman Travis Hill linked the change to lessons from the 2023 bank failures, citing the potential cost and disruption of bridge bank solutions. An updated set of frequently asked questions (FAQs) accompanies the change, and the FDIC indicated it is reviewing other provisions in the IDI Rule for different cohorts of banks and may issue additional FAQs later.
Federal Deposit Insurance Corporation 2025-04-18
Federal Deposit Insurance Corporation refocuses large bank IDI resolution planning on weekend sale execution and exempts certain plan content requirements
The FDIC revised its resolution planning for insured depository institutions, emphasizing operational information for resolving large banks through weekend sales or brief operations. Full resolution submissions won't require a bridge bank strategy or hypothetical failure scenarios. Acting Chairman Travis Hill cited lessons from 2023 bank failures, and the FDIC is reviewing other IDI Rule provisions, with potential additional FAQs forthcoming.