For release at 4:30 p.m. ET

The Federal Deposit Insurance Corporation and the Federal Reserve Board on Friday jointly announced they anticipate issuing guidance to help certain large banks further develop their resolution plans.

Resolution plans, required by the Dodd-Frank Act and commonly known as “living wills,” describe a financial company’s strategy for rapid and orderly resolution under bankruptcy in the event of financial distress or failure.

The guidance from the agencies would apply to Category II and Category III banking organizations—generally those with more than $250 billion in total assets but that are not global systemically important banks—and which have not already received guidance. Larger and more complex banks are already subject to guidance from the agencies. The agencies will seek and consider public comment on the guidance before it is finalized.

Also on Friday, the agencies announced that they did not find any “shortcomings” or “deficiencies” in the 2021 resolution plan of Truist Financial Corporation but did issue feedback to the firm on its plan. Deficiencies are weaknesses that could undermine the feasibility of the company’s resolution plan while a shortcoming is a weakness that raises questions about the feasibility of a firm’s plan but is not as severe as a deficiency.

Truist received a feedback letter providing additional information on areas of improvement for its next plan. Its next resolution plan is due on or before July 1, 2024.