FDIC to consolidate supervision and resolution activities for large banks
WASHINGTON — The Federal Deposit Insurance Corp. plans to consolidate its supervision and resolution activities for large banks and complex institutions into one division.
The agency announced this week that a new Division of Complex Institution Supervision and Resolution, or CISR, will be responsible for supervising and monitoring banks with assets of more than $100 billion for which it is not the primary regulator.
The new division, which will be operational July 21, will also plan and execute resolution mandates for those institutions, as well as other financial companies, if called upon to protect U.S. financial stability.
"Centralizing the FDIC's expertise of large, complex financial institutions into a single division within the agency will enable us to take a more holistic approach to the supervision and resolution of these institutions and the unique challenges they present," FDIC Chairman Jelena McWilliams said in a press release.
Rick Delfin, currently the director of the FDIC's complex financial institutions office, will head the new division. John Conneely, the FDIC's regional director for Chicago, will serve as acting senior deputy director to assist with the transition.
The announcement comes as the Office of the Comptroller of the Currency is also making operational changes, with plans to consolidate supervision for large banks and midsize and community banks under one umbrella.
Though the OCC’s plans are aimed at cutting costs, the FDIC said its plans are not expected to have an impact on staffing levels or its overall operating budget.