Fed, FDIC extend comment period on large-bank resolution ANPR

An additional month was added Thursday to the comment period on an advance notice of proposed rulemaking focused on the orderly resolution of large banks, issued jointly in October by the Federal Reserve and Federal Deposit Insurance Corp. (FDIC).

The ANPR, with comments now due Jan 23 (instead of Dec. 23), seeks input on whether an extra layer of loss-absorbing capacity could improve regulators’ options in resolving a large banking organization or its insured depository institution, and the costs and benefits of such a requirement.

The ANPR contemplates potential new requirements – including a long-term debt requisite – and resources that would be used for an orderly resolution of large institution.

A large institution is generally defined as a domestic bank holding company, or domestic savings and loan holding company, that has $100 billion or more in total consolidated assets but is not a GSIB (global systemically important bank) under the Fed’s capital rule.

Agencies extend comment period on advance notice of proposed rulemaking on large bank resolvability