January 29, 2018 / 9:51 PM / a year ago

U.S. banking regulators sign off on foreign bank "living wills"

WASHINGTON, Jan 29 (Reuters) - U.S. banking regulators said Monday that “living wills” submitted by 19 foreign banks are largely satisfactory, and are likely to ease expectations for future submissions from those firms.

After the 2008 financial crisis, regulators have been demanding so-called living wills to be drawn up by some banks and financial institutions to provide a contingency plan in case they become insolvent and needs to be restructured.

The Federal Reserve and Federal Deposit Insurance Corporation provided comments to 19 banks regarding their 2015 resolution plans, which were found to not have any major issues.

The regulators said in a statement that due to the limited complexity of the banks’ U.S. operations, they are “tailoring their expectations” for the next round of plans, due at the end of 2018.

The banks that submitted plans are Banco Bilbao Vizcaya Argentaria, S.A.; Banco Santander, S.A.; Bank of China Limited; Bank of Montreal; BNP Paribas; BPCE; Coöperatieve Rabobank U.A.; Crédit Agricole S.A.; HSBC Holdings plc; Industrial and Commercial Bank of China Ltd.; Mitsubishi UFJ Financial Group, Inc.; Mizuho Financial Group, Inc.; Royal Bank of Canada; Société Générale; Standard Chartered PLC; Sumitomo Mitsui Financial Group, Inc.; the Bank of Nova Scotia; the Norinchukin Bank; and the Toronto-Dominion Bank. (Reporting by Pete Schroeder; editing by Clive McKeef)

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