Bank Resolution Planning: Evaluating The FDIC’s New Direction

MoneyBanking & InsuranceBank Resolution Planning: Evaluating The FDIC’s New DirectionByMayra Rodriguez Valladares,Senior Contributor.Follow AuthorJun 09, 2026, 01:50pm EDTRethinking Resolution Readiness: Learning from Experience and Sharpening FocusgettyIn recent speeches and policy statements, Federal Deposit Insurance Corporation Chairman Travis Hill has outlined a significant shift in how the agency approaches resolution planning for large banks. The initiative, he describes as a move toward “rethinking resolution readiness” and “learning from experience,” reflecting lessons drawn from the 2023 banking failures, including the collapses of Silicon Valley Bank, Signature Bank, and First Republic Bank.While the FDIC’s proposal has attracted support from those seeking regulatory efficiency, it has also raised concerns among former regulators and financial stability advocates. The debate centers on a fundamental question: should regulators simplify resolution planning to focus on the most likely resolution outcomes, or should they continue requiring extensive contingency planning for low-probability but potentially catastrophic events?BackgroundSince the passage of the Dodd-Frank Act following the 2008 financial crisis, large banking organizations have been required to prepare detailed resolution plans, commonly known as "living wills." These plans are intended to demonstrate how a failing institution could be resolved without taxpayer bailouts and without causing widespread financial instability.The FDIC's recent proposals would reduce some of the existing requirements under the Insured Depository Institution (IDI) Rule. The agency has already waived requirements that banks build plans around bridge-bank strategies and has reduced expectations for speculative scenario analysis and subjective credibility assessments. Instead, the FDIC wants banks to focus on providing operational information that would facilitate a rapid sale or support short-term o...