Understanding Banking Resolution Planning: Your Guide to Compliance

Effective banking resolution planning is a key part of today’s banking regulatory landscape following the 2008 Financial Crisis. With the October 1, 2025 resolution plan date fast approaching, banks must demonstrate robust strategies to prevent banks failure and ensure smooth recovery during crises.

What Is a Banking Resolution?

A banking resolution, often referred to as a living will, is a comprehensive roadmap outlining how a financial institution will manage distress. In simple terms, it answers:

• What is a banking resolution? – A strategic plan that details a bank’s approach to managing financial distress.
• What is a corporate bank resolution? – A detailed framework designed to protect stakeholders and maintain operations during a crisis.

Regulatory Framework and Challenges

Resolution planning isn’t just about internal strategy or standard risk management – it’s a regulatory mandate. Key regulations include:

• FDIC Resolution Planning: Banks with assets over $100 billion must comply with strict FDIC guidelines.
• Recovery and Resolution Planning Regulations: Enforced under the Dodd-Frank Act, these rules ensure that banks have clear, actionable recovery strategies.

Key Components of Effective Resolution Planning

For recovery and resolution planning banks, these elements are essential:

• Risk Identification: Detect hidden contractual risks—such as clauses that trigger automatic termination or cross-default provisions—that may derail recovery plans.
• Data Accuracy: Streamline the review process to reduce manual errors and ensure all contract details meet compliance standards.
• Operational Efficiency: Leverage advanced technologies to simplify contract management and reporting, making compliance more manageable.

Leveraging AI for Better Compliance

Modern AI-native contract management platforms, like Sirion’s, are transforming resolution planning by:

• Automating Risk Detection: Quickly scanning contract portfolios to pinpoint high-risk clauses.
• Enhancing Data Extraction: Ensuring critical information is captured accurately for FDIC and Dodd-Frank reporting.
• Streamlining Negotiation: Reducing contract turnaround time and aligning agreements with evolving regulatory guidance.

Learn More

Our white paper, “Resolution Planning Readiness: Enhancing Compliance with AI-Native Contract Intelligence,” offers actionable insights and real-world examples from institutions like BNY Mellon and Raiffeisen Bank International. Download it today to discover detailed resolution planning guidance and safeguard your institution from unforeseen risks.

Embrace the future of compliance—download our white paper and transform your approach to resolution planning!