The US Federal Reserve Board and The Federal Deposit Insurance Corporation (FDIC) have discovered gaps in the resolution plans submitted by Credit Suisse Group and BNP Paribas.

The resolution plan details a financial firm’s strategy to deal with bankruptcy in case it faces material financial fiasco or misfortune.

The regulators have found the deficiencies after conducting a joint review of the resolution plans formulated by 71 local and foreign banking entities.

As par the findings, Credit Suisse’s 2021 resolution plan has two issues that are related to the governance of the bank’s business in the US and cash flow forecasting skills.

Credit Suisse has been asked to submit a new resolution plan for its American activities by May next year.

FDIC said in a statement: “As detailed in a feedback letter, the agencies are requiring the firm to resubmit a revised resolution plan for its U.S. operations by May 31, 2023, that demonstrates the governance weaknesses have been addressed and in its next plan due by July 2024, that demonstrates the cash flow forecasting weaknesses have been remediated.”

Credit Suisse stated that it is ‘committed to addressing the issues.’

In a statement seen by the media, Credit Suisse said: “The bank has taken, and continues to take, significant steps to enhance its resilience, including investments in controls, processes and technology.”

The latest development comes shortly after the beleaguered Swiss investment bank concluded a CHF4bn ($4.3bn) capital raise to support its restructuring.

In addition, BNP Paribas’ 2021 resolution plan includes a deficiency related to the firm’s securities repurchase agreement activity in the US.

The firm did not respond to the media queries in this regard.