US federal agencies finalize changes to resolution plan requirements
The federal agencies have finalized a rule that modifies their resolution plan requirements for larger financial firms while reducing the same requirements for smaller firms that present less financial risk to the system.
The resolution plans executed by the largest firms since 2012 had improved their governance, resolution strategies and elimination of rigid legal structures. These changes have built resiliency within the largest firms.
Conforming with the Economic Growth Regulatory Relief and Consumer Protection Act, this rule would also affect domestic and foreign firms with more than $100 billion in total consolidated assets.
Resolution plans are to be submitted on a two-year cycle by larger firms while firms that pose less systemic risk are required to submit their resolution plans on a three-year cycle.
The rule no longer applies to firms with $250 billion less consolidated assets.
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