Joint Trades on the Proposed Rulemaking for IDI Rule
Summary
The Bank Policy Institute, the Securities Industry and Financial Markets Association and the American Bankers Association (together, the Associations) appreciate the opportunity to comment on the Federal Deposit Insurance Corporation’s (the FDIC) advance notice of proposed rulemaking (the IDI ANPR) to tailor and improve its rule requiring certain insured depository institutions to submit resolution plans (the IDI Rule).
This letter begins with the Associations’ appreciation of the general approach that the IDI ANPR takes, which is to better focus the resolution planning process and to clarify certain aspects of the IDI Rule. The Associations believe this approach is largely consistent with the direction taken by the FDIC with the Board of Governors of the Federal Reserve System (the Federal Reserve, and together, the Agencies) in their proposals (165(d) Proposal) to amend and restate the jointly issued regulation implementing the resolution planning requirements of section 165(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the 165(d) Rule). This letter provides some suggestions for how the IDI Rule could be further calibrated to provide for regular submission cycles, and predictable and transparent resolution planning requirements.
Excerpt
Federal Deposit Insurance Corporation
550 17th Street NW
Washington D.C. 20429
Attention: Robert E. Feldman, Executive Secretary RIN 3064-AF05
Re: Advance Notice of Proposed Rulemaking for IDI Rule
Ladies and Gentlemen:
The Bank Policy Institute, the Securities Industry and Financial Markets Association and the American Bankers Association (together, the Associations)1 appreciate the opportunity to comment on the Federal Deposit Insurance Corporation’s (the FDIC) advance notice of proposed rulemaking (the IDI ANPR) to tailor and improve its rule requiring certain insured depository institutions to submit resolution plans (the IDI Rule).2 This letter begins with the Associations’ appreciation of the general approach that the IDI ANPR takes, which is to better focus the resolution planning process and to clarify certain aspects of the IDI Rule. The Associations believe this approach is largely consistent with the direction taken by the FDIC with the Board of Governors of the Federal Reserve System (the Federal Reserve, and together, the Agencies) in their proposals (165(d) Proposal) to amend and restate the jointly issued regulation implementing the resolution planning requirements of section 165(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the 165(d) Rule).3 This letter provides some suggestions for how the IDI Rule could be further calibrated to provide for regular submission cycles, and predictable and transparent resolution planning requirements.
The Associations appreciate the FDIC’s continued efforts to calibrate and better focus the resolution planning process.
The Associations support the FDIC’s intention to revise the IDI Rule so that the resolution planning process can be “more targeted and efficient” and to “ensure that requirements are appropriately tailored to reflect differences in size, complexity, risk, and other relevant factors”4 among covered insured depository institutions (CIDIs).
The Associations appreciate the FDIC’s engagement with the CIDIs over the years. Through the past several years of the resolution planning process, both the FDIC and the CIDIs have learned an immense amount about the components of an effective resolution planning process, including the identification of best practices and the operational capabilities that the CIDIs have implemented in order to eliminate obstacles to an orderly resolution. The Associations also recognize that the FDIC has already taken steps to enhance and focus the resolution planning process, including by adopting rules that support the FDIC’s role as the resolution authority of CIDIs,5 and, together with the Federal Reserve, by proposing changes to the 165(d) Rule.6