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Federal Reserve Highlights Declining Supervisory Bank Ratings

Federal Reserve Highlights Declining Supervisory Bank Ratings

(8 May 2024 – United States) The US Federal Reserve reports that banks of all sizes have received declining supervisory ratings.

US lenders, particularly large globally systemically important banks (GSIBS), registered declining supervisory ratings in H2 2023 driven mostly by lagging interest rate and liquidity risk management policies. Governance and risk control shortcomings are a major feature.


A mere one third of large banks received satisfactory ratings across all components of the Large Financial Institution Rating System based on capital planning, liquidity management and governance performance ratings for the largest banks.


"Supervisors have found weaknesses in interest rate risk and liquidity risk-management practices. Some large financial institutions also continued to show weaknesses in governance and controls related to operational resilience, cybersecurity, and BSA/AML compliance” the Fed Reserve published in a new report.

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