The Federal Deposit Insurance Corp. will vote on a variety of proposals to ensure regional banks with more than $100 billion in assets can be dissolved safely during crises.

This move comes in the wake of the failure of Signature Bank, Silicon Valley Bank and First Republic Bank, according to a Yahoo News report.

When those banks collapsed, regulators had to take billions of dollars from FDIC's insurance fund to break apart the firms and sell to buyers. Now, the FDIC aims to make this process smoother in the future by making rules stricter, such as requiring firms to issue more long term debt to have more funds to offset losses. The regulator would also change living will rules on how banks can be taken apart during a failure.

"The failure of three large regional banks this spring...demonstrated clearly the risk to financial stability that large regional banks can pose," Martin Gruenberg, chairman of the FDIC said in a speech earlier this month previewing the proposals. "It makes a compelling case for action by the federal bank regulatory agencies to address the underlying vulnerabilities that made the failure of these institutions possible."

The FDIC sold First Republic Bank to JPMorgan Chase quickly, but was unable to find immediate buyers for Silicon Valley Bank.

"Based on the spring banking turmoil and Gruenberg's speech, it's clear that the regulators want to avoid rushed, over-the-weekend bank sales that either take a big chunk out of the FDIC's Deposit Insurance Fund or require selling to an already-giant bank," Ian Katz, managing director of Capital Alpha Partners, told the news outlet.

Banks have claimed that these proposals are both unjustified and will lead to economic hardship.

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