US Agencies Request Comments on Use and Impact of CAMELS Ratings
US Agencies (FDIC and FED) are seeking information and comments from interested parties regarding the consistency of ratings assigned by the agencies under the Uniform Financial Institutions Rating System (UFIRS). The assigned ratings are commonly known as CAMELS ratings. The agencies are also interested in receiving feedback about the use of CAMELS ratings in their bank application and enforcement action processes. Comments must be received within 60 days after date of publication in Federal Register.
CAMELS rating system is an acronym of the six evaluation components—Capital, Asset Quality, Management, Earnings, Liquidity, and Sensitivity to market risk. In addition, the CAMELS rating system contains an overall composite rating. The agencies are issuing this request to seek public input on how CAMELS ratings are assigned to supervised institutions and the implications of such ratings in the application and enforcement action processes. This effort to seek comments and information is consistent with the agencies’ commitment to increase transparency, improve efficiency, support innovation, and provide opportunities for public feedback. This request for information is not a proposal to modify the CAMELS rating definitions. Such definitions were issued through FFIEC. The agencies encourage comments from interested members of the public, including, but not limited to, insured depository institutions, other financial institutions or companies, individual depositors, and consumers, consumer groups, trade associations, and other members of the financial services industry.
The US Agencies typically communicate the CAMELS ratings to an institution through a formal, written report of examination or other official agency correspondence. The CAMELS ratings and the report of examination or other official agency correspondence are property of the agencies and are provided to the institution’s board of directors and management for their confidential use. Given the confidentiality requirements applicable to financial institutions’ CAMELS ratings and other report of examination findings and conclusions, the agencies realize that there are limitations on responses regarding the consistency of how CAMELS ratings are assigned. The agencies, however, welcome general comments that do not breach these confidentiality requirements.
Related Links
Comment Due Date: FR+60 Days
Keywords: Americas, US, Banking, CAMELS Rating, Market Risk, UFIRS, FDIC, FED, US Agencies
Previous Article
FSB Outlines Work to Consider Regulatory Issues of StablecoinsRelated Articles
|
News
UK Regulators Announce Measures to Address Impact of COVID-19UK Regulatory Authorities published statements and guidance addressed to financial entities on dealing with the impact of the coronavirus (COVID-19) outbreak.
March 26, 2020
WebPage
Regulatory News
|
|
News
ISDA and Industry Request Delay in Timeline for Initial Margin RulesConsidering the challenges posed by the COVID-19 pandemic, ISDA submitted a letter on behalf of 21 industry associations and their members requesting BCBS, IOSCO, and global regulators to suspend the current timeline for the initial margin phase-in.
March 26, 2020
WebPage
Regulatory News
|
|
News
FCA, FRC, and PRA Issue Joint Statement to Address Impact of COVID-19In response to the COVID-19 outbreak, FCA, the Financial Reporting Council (FRC), and PRA have announced a series of actions and made statements to support the continued functioning of capital markets in the UK.
March 26, 2020
WebPage
Regulatory News
|
|
News
EC Rule Corrects Regulation Supplementing Solvency II DirectiveEC published the EU Delegated Regulation 2020/442, which corrects the EU Delegated Regulation 2015/35 that supplements Solvency II Directive (2009/138/EC).
March 26, 2020
WebPage
Regulatory News
|
|
News
FED and FFIEC Offer Reporting Relief to Institutions Due to COVID-19FED and FFIEC announced regulatory reporting relief to financial institutions due to disruptions caused by the COVID-19.
March 26, 2020
WebPage
Regulatory News
|
|
News
EBA and ESMA Clarify Accounting Implications of COVID-19 MeasuresEBA and ESMA issued statements to address certain accounting implications of the economic support and relief measures adopted by EU member states in response to the COVID-19 crisis.
March 25, 2020
WebPage
Regulatory News
|
|
News
IOSCO and Securities Regulators Coordinate Responses to COVID-19IOSCO members are cooperating closely on their responses to the COVID-19-related disruption in capital markets.
March 25, 2020
WebPage
Regulatory News
|
|
News
US Agencies Issue Interim MMLF Rule, FED Updates FR Y-14 FormsIn an effort to mitigate the impact of economic disruptions due to the COVID-19 outbreak, Money Market Mutual Fund Liquidity Facility (MMLF) was launched in the US to enhance the liquidity and functioning of money markets and to support the economy.
March 25, 2020
WebPage
Regulatory News
|
|
News
ESRB Updates List of Countercyclical Capital Buffers in March 2020ESRB updated the list of countercyclical capital buffer (CCyB) rates applicable in countries in the Eurosystem.
March 24, 2020
WebPage
Regulatory News
|
|
News
FHFA Amends Stress Testing Rule for Regulated EntitiesFHFA adopted a final rule that amends the stress testing rule, in line with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.
March 24, 2020
WebPage
Regulatory News
|
