The Federal Financial Institutions Examination Council has invited public comment on proposed revisions to the CAMELS supervisory rating system, which regulators use to assess the safety and soundness of financial institutions and identify firms requiring heightened supervisory attention or other supervisory action. The proposal would strengthen the link between ratings and an institution’s safety and soundness by focusing assessments on material financial risks and by improving the transparency of ratings. The revisions would retain the basic CAMELS framework but change the definitions and evaluation factors for both the composite rating and the six component ratings covering capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to market risk. The FFIEC described the package as the first comprehensive revision of the framework in 30 years. Comments are due within 90 days of publication in the Federal Register.
Federal Financial Institutions Examination Council2026-05-19
Federal Financial Institutions Examination Council launches consultation on CAMELS revisions focused on material financial risk and ratings transparency
The Federal Financial Institutions Examination Council has proposed revisions to the CAMELS supervisory rating system to better align ratings with institutions’ safety and soundness by focusing on material financial risks and improving transparency. The proposal retains the CAMELS framework but updates the definitions and evaluation factors for the composite rating and the six component ratings—capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to market risk—marking the first comprehensive overhaul in 30 years.