SPST-0210 Renewal - 9-26-2023

SUPPORTING STATEMENT
Reporting Requirements Associated with Resolution Planning
(OMB Control No. 3064-0210)
INTRODUCTION
The Federal Deposit Insurance Corporation (FDIC) is requesting a three-year renewal of the
Reporting Requirements Associated with Resolution Planning (OMB No. 3064-0210). This
collection comprises the reporting associated with firms required submit resolution plans
pursuant to Section 165(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank Act) and 12 CFR 381 (Part 381). The current clearance for the collection expires
on January 31, 2024. There is no change in the method or substance of the collection.
A.

JUSTIFICATION
1. Circumstances that make the collection necessary:
To promote financial stability, section 165(d) of the Dodd-Frank Act requires
certain companies to periodically submit a plan for such company’s rapid and
orderly resolution under the Bankruptcy Code in the event of the company’s
material financial distress or failure.
On November 1, 2011, the agencies published the a final rule in the Federal
Register (76 FR 67323), to implement the resolution plan requirement set forth in
section 165(d)(1) of the Dodd-Frank Act. The effective date for Part 381 was
November 30, 2011, and the first set of resolution plans were submitted in July
2012, as required by the regulation.
On November 1, 2019, the agencies amended Part 381 in the Federal Register
(84 FR 59194). The effective date for Part 381, as amended, was December 31,
2019.
Resolution plans filed under section 165(d) and Part 381 assist covered
companies and regulators in conducting advance resolution planning for a
covered company. Through the FDIC’s experience in failed bank resolutions, as
well as the Board of Governors of the Federal Reserve System’s (Board) and the
FDIC’s experience in the most recent financial crisis, it became apparent that
advance planning has the potential to improve the efficient resolution of a
covered company. Advance planning has long been a component of resiliency
and recovery planning by financial companies. The resolution plan required of
covered companies under Part 381 supports the FDIC’s planning for the exercise
of its resolution authority under the Dodd-Frank Act by providing the FDIC with
an understanding of the covered companies’ structures and complexity, as well as
their resolution strategies and processes. The resolution plans also keep the
agencies apprised of relevant changes to the covered companies’ structure,
complexity, and other factors that may affect resolvability. In addition, these
plans enhance the agencies’ understanding of the U.S. operations of foreign
banking organizations and improve efforts to develop a comprehensive and
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coordinated resolution strategy for a foreign banking organization.
Part 381 requires each resolution plan to contain certain information, including
information regarding the manner and extent to which any insured depository
institution affiliated with the covered company is adequately protected from risks
arising from the activities of nonbank subsidiaries of the company; descriptions of
the ownership structure, assets, liabilities, and contractual obligations of the
company; identification of the cross-guarantees tied to different securities;
identification of major counterparties; a process for determining to whom the
collateral of the company is pledged; and other information that the Board and the
FDIC jointly require by rule or order. Part 381 also requires a strategic analysis
by the covered company of how it can be resolved under the Bankruptcy Code
within a reasonable period of time and in a manner that substantially mitigates the
risk that the failure of the covered company would have serious adverse effects on
financial stability in the United States. Since the implementation of Part 381 in
2011, the agencies have provided additional guidance to covered companies
regarding the information that should be included in, or that can be omitted from,
a company’s resolution plan.
The information collected under Part 381 has been helpful for identifying
obstacles to a rapid and orderly resolution under the Bankruptcy Code. The
agencies have used this information to provide feedback to covered companies
concerning improvements to their resolution plans and planning processes. The
resolution plan submissions have also provided information about covered
companies’ structure and operations that have been useful to the FDIC in
planning for any actions it would take with respect to its authority under the
Dodd-Frank Act.
2. Use of the information:
As stated above, the resolution plans required of covered companies under Part 381
support the FDIC’s planning for the exercise of its resolution authority under the
Dodd-Frank Act and the Federal Deposit Insurance Act (FDI Act) by providing the
FDIC with an understanding of the covered companies’ structures and complexity, as
well as their resolution strategies and processes. The resolution plans also keep the
agencies apprised of relevant changes to the covered companies’ structure,
complexity, and other factors that may affect resolvability.
The reporting requirements are found in sections 381.3, 381.4, 381.5, 381.6, 381.7,
381.8, 381.11 of Part 381. Compliance with the information collection is mandatory.
No other federal law mandates these reporting requirements.
General Requirements
Section 381.3 - In connection with the submission of a resolution plan, certain
covered companies are required to establish and implement a process and
methodology to identify each of its critical operations. Certain covered companies,
including those that have previously submitted a resolution plan under this part and
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do not currently have an identified critical operation under this part would be able to
request a waiver of the requirement to have a process and methodology under
381.3(a)(1).
Section 381.4 - Resolution plan required sets forth a staggered schedule for
submission of initial resolution plans by firms that become covered companies and
become subject to Part 381, and requires that covered companies submit an updated
resolution plan on the July 1 of each year in which a plan is due. In addition, section
381.4 establishes a requirement that a covered company provide notice to the Board
and FDIC of extraordinary events that have the potential to affect its resolvability.
Section 381.4 allows the FDIC and the Board to jointly modify a covered company’s
resolution plan submission deadline, and to jointly require a covered company to
submit an interim update to its resolution plan. Additionally, a covered company that
submits a request to waive certain informational content requirements from its full
resolution plan, as permitted under section 381.4, is required to submit certain
information supporting its request for a waiver.
Section 381.5 – This section describes the informational content of a full
resolution plan.
Section 381.6 – This section describes the informational content of a targeted
resolution plan.
Section 381.7 – This section describes the informational content of a reduced
resolution plan.
Section 381.8 – This section requires that, if the Board and FDIC jointly
determine that a resolution plan of a covered company is not credible or would
not facilitate an orderly resolution of the covered company under the Bankruptcy
Code, a covered company is required to resubmit a revised plan within 90 days of
receiving notice of deficiencies the agencies jointly identified in the resolution
plan (or such other period as the agencies jointly determine). A covered company
would also be able to submit a written request for an extension of time to resubmit
a revised resolution plan.
Section 381.11 – This section describes the informational content of the public
section of a full resolution plan, a targeted resolution plan, and a reduced
resolution plan.
3. Consideration of the use of improved information technology:
Covered companies may use technology to the extent feasible and/or desirable or
appropriate to make the required reports. Generally, at the direction of the Board and
the FDIC, covered companies have used a secure electronic portal to submit their
resolution plans in digital format.

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4. Effort to identify duplication:
The reporting requirements are found in sections 381.3, 381.4, 381.5, 381.6, 381.7,
381.8, 381.11 of Part 381. Compliance with the information collection is mandatory.
No other federal law mandates these reporting requirements and therefore the
reporting requirements are not otherwise duplicated.
5. Methods used to minimize burden if the collection has a significant impact on a
substantial number of small entities:
This collection does not have a significant impact on a substantial number of small
entities. In particular, according to Call Report data as of March 31, 2023, there were
3,012 FDIC-supervised institutions of which 2,306 have total assets of less than $850
million therefore meeting the Small Business Administration’s definition of a “small
entity.” In particular, Part 381 applies to covered companies, which would include
only bank holding companies and foreign banks that are or are treated as a bank
holding company (foreign banking organization), in both cases with at least $250
billion in total consolidated assets. The assets of a covered company substantially
exceed the $850 million asset threshold at which a banking organization is considered
a “small entity” under the Small Business Administration’s regulations.
In addition, Part 381 applies to a nonbank financial company designated by the
Financial Stability Oversight Council (FSOC) under section 113 of the Dodd-Frank
Act regardless of such a company’s asset size. Although the asset size of nonbank
financial companies may not be the determinative factor of whether such companies
may pose systemic risks and would be designated by the FSOC for supervision by the
Board, it is an important consideration. It is therefore unlikely that a financial firm
that is at or below the $850 million asset threshold would be designated by the FSOC
under section 113 of the Dodd-Frank Act because material financial distress at such
firms, or the nature, scope, size, scale, concentration, interconnectedness, or mix of it
activities, are not likely to pose a threat to the financial stability of the United States.
6. Consequences to the Federal program if the collection were conducted less frequently:
Resolution plans filed under section 165(d) and Part 381 assist covered companies
and regulators in conducting advance resolution planning for a covered company.
Through the FDIC’s experience in failed bank resolutions, as well as the Board’s and
the FDIC’s experience in the most recent financial crisis, it became apparent that
advance planning has the potential to improve the efficient resolution of a covered
company. Advance planning has long been a component of resiliency and recovery
planning by financial companies. The resolution plan required of covered companies
under Part 381 supports the FDIC’s planning for the exercise of its resolution
authority under the Dodd-Frank Act by providing the FDIC with an understanding of
the covered companies’ structures and complexity as well as their resolution
strategies and processes. The resolution plans also keep the agencies apprised of
relevant changes to the covered companies’ structure, complexity, and other factors
that may affect resolvability. The resolvability of firms changes as markets change
and as firms’ activities, structures, and risk profiles change. Less frequent collection
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of information could impede the FDIC’s advance resolution planning.
7. Special circumstances necessitating collection inconsistent with 5 CFR 1320.5(d)(2):
None. This information collection is conducted in accordance with the guidelines in
5 CFR 1320.5(d)(2).
8. Efforts to consult with persons outside the agency:
On July 18, 2023, the FDIC issued the proposed guidance in the Federal Register (88
FR 45902) seeking comment on any reporting, recordkeeping, or third-party
disclosure requirements under the PRA. No comments were received with respect to
the PRA.
9. Payment or gift to respondents:
None.
10. Any assurance of confidentiality:
Any information deemed to be of a confidential nature would be exempt from public
disclosure in accordance with the provisions of the Freedom of Information Act (5
U.S.C. 552).
11. Justification for questions of a sensitive nature:
No questions of a sensitive nature are included in the collection.
12. Estimate of Hour Burden:
The FDIC’s estimated burden 1 for the respondents for complying with the collection
of information is 203,332 hours.
Summary of Estimated Annual Burden (OMB No. 3064-0210)
Information Collection
(Obligation to Respond)

Type of Burden
(Frequency of
Response)

Number of
Respondents

Number of
Responses per
Respondent

Time per
Response
(HH:MM)

Annual
Burden
(Hours)

12 CFR 381.4(a) Biennial Filers - Domestic

Reporting
(Biennial)

4

1

40,115:00

160,460

12 CFR 381.4(b) Triennial Full - Complex
Foreign

Reporting
(Triennial)

1

1

9,916:00

9,916

Historically, the Board and the FDIC have split the respondents for purposes of PRA clearances. As such, the
agencies will split the change in burden as well. The FDIC has agreed to take the burden of the new triennial full
complex filer and one Proposed FBO whereas the Board will take the burden for the remaining two Proposed FBOs.
Specially, as a result of this split and these revisions, there will be a net decrease in the overall estimated burden of
6,438 hours for the Board and 6,587 hours for the FDIC. Therefore, the total Board estimated burden for its entire
information collection (7100-0346) is 209,168 hours and the total FDIC estimated burden for its entire information
collection (3064-0210) is 203,332 hours.
1

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12 CFR 381.4(b) Triennial Full - Foreign
and Domestic

Reporting
(Triennial)

7

1

5,667:00

39,669

12 CFR 381.4(c) Triennial Reduced

Reporting
(Triennial)

27

1

20:00

540

Reporting
(On occasion)

1

1

1:00

1

Total Annual Burden (Hours):

210,586

12 CFR 381.4(d)(6)(ii) Waivers by Covered
Companies

13. Estimate of Start-up Costs to Respondents:
None.
14. Estimate of annualized costs to the government:
None.
15. Analysis of change in burden:
There is no change in the method or substance of the collection. The 7,254-hour
increase in burden hours is a result of an increase in the number of entities subject to
the information collection.
16. Information regarding collections whose results are planned to be published for
statistical use:
The information is not published.
17. Display of Expiration Date
Not applicable.
18. Exceptions to Certification Statement
None.
B.

STATISTICAL METHODS
Not applicable.

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