United States: Financial Sector Assessment Program-Technical Note-Financial Crisis Preparedness and Deposit Insurance

August 10, 2020

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United States: Financial Sector Assessment Program-Technical Note-Financial Crisis Preparedness and Deposit Insurance, (USA: International Monetary Fund, 2020) accessed November 21, 2024

Summary

The U.S. authorities should preserve the considerable progress in the resiliency, recoverability, and resolvability of financial companies and insured depository institutions (IDIs), and intensify financial crisis preparedness efforts. After a decade of resolution planning, the development of the U.S. resolution regime is more advanced than in other major economies. This regime, together with the strong track record of the deposit insurance system (DIS) for banks and the federal banking agencies’ (FBAs) preparation for resolution, provide a strong foundation for crisis preparedness. Bank holding companies (BHCs) have integrated recovery and resolution planning (RRP) into business-as-usual (BAU) activities, increasing their resiliency; this process has deepened the FBAs’ understanding of the BHCs’ business models and RRP capabilities. The FBAs should continue their own annual resolution planning and mitigate the recent changes that reduced the BHCs’ RRP. These efforts should be complemented by further interagency crisis preparedness, including particularly with the U.S. Department of the Treasury (UST), given its essential role in critical aspects of crisis responses. Finally, further refinements relating to cross-border resolution also deserve attention.

Subject: Bank resolution framework, Crisis management, Crisis prevention, Deposit insurance, Financial crises, Financial Sector Assessment Program

Keywords: Bank resolution framework, CR, Crisis management, Crisis prevention, Deposit insurance, Depositor preference regime, DFA Title I, FDIC crisis readiness planning, FDIC OIG, FDIC recordkeeping, FDIC resolution measure, FDIC rule, FDIC-administered deposit insurance fund, Financial crisis, Global, Host resolution authority, ISCR, Resolution regime

Publication Details

Pages:

38
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/245
Stock No:

1USAEA2020005
ISBN:

9781513552903
ISSN:

1934-7685

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