The Federal Reserve System (FRS) and the Federal Deposit Insurance Corporation (FDIC) of the United States expressed satisfaction with the overall anti-crisis plans (the so-called living wills) of 19 foreign banking organizations operating in the country.
The regulators did not find any significant shortcomings in these “wills”, which were submitted by banks in December 2015.
The Dodd-Frank law adopted in 2010 requires financial companies to have reliable schemes for trouble-free closure under bankruptcy law in the event of a crisis without attracting budgetary funds. For foreign banking organizations, “wills” should be concentrated on their American divisions. The Fed and the FDIC should approve these plans, otherwise more stringent requirements or sanctions may be imposed on banks, including increased capital requirements and restrictions on certain activities.
As stated in the message of the FDIC, the following “wills” foreign banks will have to provide no later than December 31, 2018.
The list of foreign financial companies considered by regulators includes Banco Bilbao Vizcaya Argentaria S.A .; Banco Santander (MC: SAN) S.A .; Bank of China Limited; Bank of Montreal; BNP Paribas (PA: BNPP); BPCE; Cooperatieve Rabobank U.A .; Credit Agricole (PA: CAGR) S.A .; HSBC Holdings (LON: HSBA) plc; Industrial and Commercial Bank of China Ltd .; Mitsubishi UFJ Financial Group Inc .; Mizuho Financial Group Inc .; Royal Bank of Canada; Societe Generale (PA: SOGN); Standard Chartered (LON: STAN) PLC; Sumitomo Mitsui Financial Group, Inc .; The Bank of Nova Scotia; The Norinchukin Bank and The Toronto-Dominion Bank.