Author: admin

Summary:

The Federal Deposit Insurance Corporation (FDIC) is providing an update related to insured depository institution (IDI) resolution planning requirements (IDI Rule) for covered insured depository institutions (CIDIs), as the FDIC develops proposed amendments to the IDI Rule.

Statement of Applicability: The contents of, and material referenced in, this FIL do not apply to FDIC-insured and/or FDIC-supervised institutions with less than $10 billion in total consolidated assets. The content of, and material referenced in, this FIL apply to FDIC-insured depository institutions with $50 billion or more in total assets. 

Highlights:

Proposed Changes to the IDI Rule

• The FDIC plans to propose changes to the IDI Rule for FDIC Board consideration in 2026. At a minimum, the FDIC expects the forthcoming proposed rule to codify the content requirement exemptions and FAQs associated with the modified approach set out in April 2025.
• The FDIC also intends to propose additional changes that take into account lessons learned from reviewing 2025 IDI Rule submissions to ensure that the information most critical to supporting the FDIC’s ability to execute a rapid, low-cost failed bank resolution under the FDI Act is available to the FDIC, while eliminating requirements that might distract from this objective or that otherwise provide relatively low value.
• In advance of the proposed rule, the FDIC continues to evaluate the interplay between the Title I Rule, which requires certain bank holding companies to submit resolution plans to the FDIC and Federal Reserve Board, and the IDI Rule, and will consider adjustments to address overlap between these requirements.

2026 Submission Requirements

The FDIC intends to proceed with the following submissions in 2026:

• CIDI subsidiaries of U.S. global systemically important banks (U.S. GSIBs) that are scheduled to file full resolution submissions on or before July 1, 2026 will instead be required to submit content equivalent to an interim supplement by that date.
• The remaining Group A CIDIs will be required to file submissions as currently scheduled, subject to the FAQs and related communications regarding waivers of content requirements for this cycle. The FDIC also plans to provide additional waivers for valuation content that has not proven valuable during reviews of the 2025 submissions.
• Group B CIDIs that are scheduled to file full resolution submissions on or before April 1, 2026 or July 1, 2026 will be required to file submissions as currently scheduled, subject to the FAQs and related communications regarding waivers of content requirements for this cycle. This approach aligns these filers with similar Group B CIDIs that filed full resolution submissions in 2025.
• Group B CIDIs that are scheduled to file full resolution submissions on or before October 1, 2026, and any IDIs that become CIDIs prior to the issuance of a final rule, will not be required to file submissions until a final rule is issued. Similarly, Group B CIDIs required to file an interim supplement on or before October 1, 2026 will not be required to file such submissions.

2026 Capabilities Testing

• The FDIC will conduct capabilities testing in 2026 on CIDIs’ capabilities to populate certain information to the FDIC’s virtual data room (VDR). A bank’s capability to quickly populate a VDR so that potential bidders can perform due diligence is essential if there is a rapid failure.
• Capabilities testing is expected to commence in early 2026 for CIDIs that filed full resolution submissions in 2025. For CIDIs filing full resolution submissions in 2026, testing is expected to begin in the months following the submission due date.
• Advance notification and instructions will be provided to CIDIs approximately 30 days prior to the testing start date.
• The FDIC expects to only conduct capabilities testing for the CIDI subsidiaries of the U.S. GSIBs through the Title I planning process.