Reported 1 day ago
The Federal Reserve has proposed changes to its supervisory framework for large banks, aiming to ease the process for banks to be classified as 'well managed'. The new criteria would require banks to show deficiencies across multiple areas rather than just one to lose this rating. This move is intended to address concerns from banks about the current system being overly critical and subjective, particularly regarding governance and controls. However, some officials worry this change may undermine supervision by allowing banks with management weaknesses to still be considered well managed.
Source: YAHOO