Board of Governors of the Federal Reserve System

Recovery and resolution planning is designed to support a financial institution's preparedness for recovering from a severe stress as well as to help ensure that its failure would not have serious adverse effects on financial stability in the United States. To promote financial stability, laws put in place following the Great Financial Crisis require large financial institutions to develop and maintain plans for rapid and orderly resolution in the event of material financial distress or failure. These financial institutions are required periodically to submit resolution plans, also known as living wills, to the Federal Reserve and the Federal Deposit Insurance Corporation for review. Recovery planning is also important to ensure a financial institution is resilient and can recover from a range of internal and external stresses.