OCC Finalizes Guidelines for Recovery Planning

On September 29, 2016, the OCC adopted final guidelines establishing recovery planning standards for insured national banks, insured Federal savings associations, and insured Federal branches of foreign banking organizations with average total consolidated assets of $50 billion or more.

While the final guidelines incorporated some changes and clarifications in response to comments received on the guidelines proposed in December 2015, the OCC principally adopted the guidelines as proposed. The final guidelines are generally consistent with the recovery plan guidelines issued by the Federal Reserve for the largest bank holding companies in 2015.

While there are obvious parallels with resolution planning requirements as well, the OCC noted that recovery plans must comply with the OCC guidelines and that plans prepared for other purposes or entities are unlikely to comply. These new guidelines continue a trend towards formal planning processes as a means of implementing supervisory goals, including – in many cases – significant restructuring of business operations.