The Federal Financial Institutions Examination Council (FFIEC) announced on May 19 that it is seeking public comment on proposed revisions to the uniform financial institutions rating system, known as CAMELS. The council invites comments within 90 days of publication in the Federal Register through the Federal eRulemaking Portal.
The CAMELS rating system is used by regulators to assess the safety and soundness of financial institutions, assigning ratings based on capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to market risk. These ratings help supervisors identify institutions needing increased oversight or other actions.
Michelle W. Bowman, Chair of the FFIEC and Vice Chair for Supervision of the Federal Reserve Board, said this revision marks a significant update after three decades. “The revised CAMELS framework marks a decisive shift toward transparency, quantitative factors, and predictability of supervisory oversight,” Bowman said.
The proposal aims to better connect ratings with material financial risks while keeping much of the existing framework intact. Changes would include updates to definitions and evaluation factors for both composite and component ratings. The FFIEC was established by federal law in 1978 to set standards for examining financial institutions and promote uniform supervision practices among its member agencies.
Kyle Hauptman has served as chairman of the National Credit Union Administration Board according to the official website. The National Credit Union Administration functions as a U.S. government agency serving federally insured credit unions nationwide; it guarantees safe deposits, offers regulatory oversight for these institutions, charters new credit unions, provides tools such as Share Insurance Estimator and CUOnline for members’ use according to the official website.
Looking ahead, members of the public are encouraged to participate in shaping these revisions by submitting their feedback through official channels.
