Fed to weigh changes to resolution plans, foreign bank requirements
WASHINGTON — The Federal Reserve Board will hold an open meeting April 8 to consider proposals to change resolution planning requirements for both foreign and domestic banks, as well as the tailoring of requirements for foreign banks.
Rules implemented under the Dodd-Frank Act require the largest banks to draft living wills that outline how they would be unwound in the event of a failure, but the Fed has previously suggested that it was considering making changes to the resolution planning guidelines.
In a speech last July, Fed Vice Chairman for Supervision Randal Quarles suggested that banks in the $100 billion to $250 billion range could get a break from filing resolution plans.
"We should consider limiting the scope of application of resolution planning requirements to only the largest, most complex, and most interconnected banking firms because their failure poses the greatest spillover risks to the broader economy,” Quarles said.
The Fed had also announced in October that it planned to present a proposal in the near future on the applicable prudential standards for foreign banking organizations in line with last May’s regulatory relief law.