Cross-border resolution planning topic for U.S., European regulators with eye toward GSIBs

A coordination exercise of cross-border resolution planning among regulators and supervisors from the U.S., the United Kingdom (UK) and the European Banking Union (EBU) is set for Saturday, the federal bank deposit insurance agency said Tuesday.

The conference, the Federal Deposit Insurance Corp. (FDIC) said, is a trilateral principal level exercise (TPLE), which the agency is hosting.

The FDIC said the meeting is part of a series of regular exercises and exchanges among the principals of the regulators and supervisors. The intent, the FDIC said, is to enhance understanding of each jurisdiction’s resolution regime for global systemically important banks (G-SIBs), strengthen coordination on cross-border resolution, and promote confidence in and commitment to the orderly resolution of G-SIBs.

“The 2024 TPLE builds on a series of such exercises going back to 2014, with the European Banking Union authorities joining in 2016,” the FDIC said in a release. “The exercise coincides with the spring meetings in Washington, D.C. sponsored by the World Bank and International Monetary Fund (IMF). The 2024 TPLE will draw on cross-border cooperation processes developed to operationalize international standards applicable to G-SIBs and lessons learned from the 2023 failures of large banks in multiple jurisdictions.”

Participants from the U.S., according to the FDIC, include principals from: the Department of the Treasury, the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, the FDIC, the Securities and Exchange Commission (SEC), the Office of the Comptroller of the Currency (OCC), the Consumer Financial Protection Bureau (CFPB), and the Commodity Futures Trading Commission (CFTC).

Participants from the EBU, the FDIC said, include principals from: the Single Resolution Board, the European Commission, and the European Central Bank. Participants from the United Kingdom include principals from His Majesty’s Treasury and the Bank of England.

Principals of U.S., European Banking Union, and U.K. Financial Authorities Meet for Regular Coordination Exercise on Cross-Border Resolution Planning