FDIC Finds Banks Well-Capitalized, Resilient

Today’s FDIC 2023 Risk Review concludes that banks were well capitalized as of Q1 2023 and have demonstrated resilience through weaker economic conditions, rising interest rates, high inflation, and this year’s financial turmoil even though industry performance moderated from 2022.  Key risks on which the FDIC will focus include liquidity risks as well as the effects of bank failures on overall banking conditions and stability.

FDIC Plans Major Resolution, Insurance Rewrite

As anticipated, FDIC Chair Gruenberg’s speech today confirms that his agency and the Fed will soon propose a TLAC framework for regional banks akin to the long-term debt TLAC standards imposed on GSIBs (see FSM Report RESOLVE48).  Mr. Gruenberg also indicated that the FDIC will soon propose a new version of its 2011 IDI resolution rules (see FSM Report LIVINGWILL8).

Daily081423.pdf