WASHINGTON (Reuters) -The U.S. Federal Reserve announced on Wednesday it had finalized a revised framework for how it grades large banks, which will make it easier for firms to maintain a passing grade. The new framework is similar to a proposal first floated by the Fed in July, which will make it easier for banks […]
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Fed finalizes revised standard for grading big banks
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WASHINGTON (Reuters) -The U.S. Federal Reserve announced on Wednesday it had finalized a revised framework for how it grades large banks, which will make it easier for firms to maintain a passing grade.
The new framework is similar to a proposal first floated by the Fed in July, which will make it easier for banks to obtain a “well managed” rating from bank examiners, by only downgrading them due to deficiencies across multiple categories instead of just one under the prior standard.
(Reporting by Pete Schroeder; Editing by Chris Reese)