Enhancing Bank Resolution Participation Act

The "Enhancing Bank Resolution Participation Act" mandates a joint study by the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) on the use of shelf charters and modified bidder qualification processes . This study will examine the historical application of these tools by both agencies, including their consideration in the resolution of insured depository institutions that failed in 2023. The agencies must assess how greater utilization of these processes could have expanded the pool of participants in failed bank acquisitions, fostered greater competition, better protected the Deposit Insurance Fund, and strengthened financial stability. This includes evaluating whether increased use could have reduced the need for emergency government determinations during bank resolutions. Within 270 days, the OCC and FDIC are required to submit a report to Congress detailing their findings and identifying any statutory or regulatory barriers to the effective use of these tools. The report must also include recommendations for legislative and regulatory changes to enhance bank resolution participation, with consultation from the Federal Reserve Board.