On December 17, 2015, the OCC proposed guidelines which would establish minimum standards for recovery planning for insured national banks, insured federal savings associations, and insured federal branches of foreign banks with average total consolidated assets of $50 billion or more. The proposed guidelines would require covered institutions to develop and maintain a recovery plan, commensurate with its risk profile and activities, that establishes quantitative and qualitative indicators of risk (based on severe stress scenarios) that would require escalation to the institution’s board of directors or senior management for purposes of initiating a response. The plans must also identify and evaluate a wide range of potential recovery options the covered bank would take to permit the entity to avoid liquidation or resolution. The proposed guidelines would require review of the plan by the institution’s board and management at least annually. Management should revise the plan as necessary to reflect material changes to the bank’s risk profile or activities. The notice of proposed rulemaking is open for public comment for 60 days. The guidelines would be enacted as an appendix to the OCC’s regulations on safety and soundness standards. Under the proposed guidelines, if a covered bank does not meet the standards of the guidelines, the OCC could take enforcement action pursuant to the Federal Deposit Insurance Act.

OCC Bulletin 2015-50 announcing the notice of proposed rulemaking is available at: http://www.occ.treas.gov/newsissuances/bulletins/2015/bulletin-2015-50.html.

The proposed guidelines are available at: https://www.federalregister.gov/articles/2015/12/17/2015-31658/guidelinesestablishing-standards-for-recovery-planning-by-certain-large-insured-national-banks#h-10.