WASHINGTON: US bank regulators said on Friday they had identified no shortcomings in "living wills" submitted by 82
WASHINGTON: US bank regulators said on Friday they had identified no shortcomings in "living wills" submitted by 82 foreign banks detailing how their US operations could be safely dissolved in a crisis.
The Federal Reserve and Federal Deposit Insurance Corporation did seek additional information from seven banks in their next plan submissions. They include HSBC Holdings Plc , BNP Paribas, Royal Bank of Canada, Banco Bilbao Vizcaya Argentaria, S.A., Bank of Montreal, Banco Santander S.A. and Toronto-Dominion Bank.
The regulators also said in a statement they extended the deadline for submitting new resolution plans for those foreign companies and 15 large regional banks until July 1, 2021.
The agencies extended relief to Barclays PLC, Credit Suisse, Deutsche Bank AG, and UBS AG, saying the foreign banks could submit limited plans on July 1, 2020 detailing how they addressed shortcomings regulators identified in their previous submission. They would also have to submit full plans in 2021.
Resolution plans, commonly known as living wills, require large banks to detail how they could be unwound in cases of bankruptcy with minimal disruption to the financial system. If the plans cannot gain regulatory approval, banks could face more severe restrictions or even be ordered to divest.
In April, the Fed proposed a relaxed reporting schedule for those plans, permitting banks to submit full plans less frequently.