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US regulator looks to formalise bank recovery planning

[NEW YORK] The Office of the Comptroller of the Currency will soon seek comment on new proposed rules for US banks aimed at ensuring they can recover quickly from severe stress.

Under new proposals, banks with US$50b or more in total assets would be subject to a formal framework for evaluating their plans to remain operational during a crisis, said the OCC in an emailed statement on Monday.

The proposals could be published to the Federal register as early as this week, said a spokesman for the OCC. "Recovery planning must be an integral part of institutions'corporate governance structures and processes," said OCC chief Thomas Curry.

The rules would likely focus on banks' capital and liquidity, said Jaret Seiberg, an analyst at Guggenheim Partners. "This could become another check on the ability of banks to return capital to shareholders," Mr Seiberg told IFR.