The Federal Reserve seeks feedback on revising the bank supervision rating system.

The Federal Reserve announced that it will seek feedback on a proposal to revise the framework for supervisory ratings of large banks. The Federal Reserve stated on Thursday that the bank supervisory framework released in 2018 includes four possible ratings: broadly meets expectations, meets expectations with conditions, deficient-1, or deficient-2. The proposal will modify the framework to consider banks with no more than one deficient-1 rating as "well-managed" banks. Companies that do not meet this standard will be considered poorly managed and may face restrictions in certain activities. If a bank receives a deficient-2 rating in any category, it will continue to be considered poorly managed, consistent with the current framework.