Regulatory Alerts2026-05-19
Supervisory Ratings: Proposed Revisions to the Uniform Financial Institutions Rating System
The Federal Financial Institutions Examination Council has proposed revisions to the CAMELS rating system that strengthen the link between supervisory ratings and financial institution safety by focusing on material financial risks. These changes modify composite and component rating definitions while retaining the existing framework, applying directly to all national banks and federal savings associations. Public comment on all aspects of the proposed revisions is due 90 days after publication in the Federal Register.
OCC Bulletin 2026-22
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May 19, 2026
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To Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division Heads; All Examining Personnel; and Other Interested Parties
The Federal Financial Institutions Examination Council today invited public comment on proposed revisions to the Uniform Financial Institutions Rating System, commonly known as the CAMELS rating system, to focus ratings on material financial risk and improve the transparency of ratings. Comments on all aspects of the proposed revisions are due 90 days after publication of the proposed revisions in the Federal Register.
Note for Community Banks
The proposed revisions to the CAMELS rating system would apply to all national banks and federal savings associations.
Highlights
The proposed revisions to the CAMELS would
strengthen the link between ratings and a financial institution’s safety and soundness by focusing ratings on material financial risks.
retain the basic framework of the existing rating system while modifying the composite and component rating definitions and evaluation factors.
Background
The CAMELS rating system evaluates the safety and soundness of financial institutions, assessing six components: capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to market risk. An institution is assigned a rating for each component and a composite rating.
Further Information
Please contact the Office of the Chief National Bank Examiner at (202) 649-5420.
James M. Gallagher Senior Deputy Comptroller and Chief National Bank Examiner
Related Link
FFIEC Press Release, “Agencies Request Comment on Financial Institutions Rating System”
Topic(s):
Uniform Rating Systems