Which part outlines the parameters for creating resolution plans?

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The correct choice that outlines the parameters for creating resolution plans is Part 381. This regulation is specifically designed to establish the requirements and processes that financial institutions must follow to develop and maintain resolution plans, commonly known as "living wills."

Resolution plans are critical for ensuring that a financial institution can be effectively managed in the event of financial distress or failure, aiming to minimize systemic risk and protect depositors. Part 381 provides a structured framework through which institutions must detail their strategies for unwinding operations, addressing capital issues, and ensuring that critical functions continue without significant disruption.

This part is essential for regulatory compliance and provides clarity on expectations, including the criteria for the plans, submission processes, and any necessary reporting. Understanding Part 381 is fundamental for those studying FDIC regulations, as it directly impacts how banks prepare for potential challenges in maintaining stability and solvency.

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