financetom
Economy
financetom
/
Economy
/
Federal Reserve reviewing confidential ratings for US big banks, WSJ reports
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Federal Reserve reviewing confidential ratings for US big banks, WSJ reports
May 26, 2025 12:43 AM

(Reuters) -The U.S. Federal Reserve's incoming vice chair for supervision is seeking to review the confidential ratings for the health of the country's biggest banks, the Wall Street Journal reported on Friday.

If any adjustments were to be made to the supervisory ratings, which have gone through layers of evaluation at the central bank, some bank examiners would likely raise concerns, according to the report.

The Fed is yet to release the new ratings for U.S. banks with over $100 billion or more in assets and intends to wait until the Senate confirms Michelle Bowman as the new top banking cop, the report added, citing people familiar with the matter.

The Federal Reserve declined to comment on the matter, when contacted by Reuters.

Bowman was nominated by President Donald Trump for the vice chair for supervision role, the Fed's top regulatory post. A former community banker, she has served on the Fed's board of governors since 2018.

She has been vocal about the Biden administration's efforts to impose stricter rules on the financial sector and has called for a lighter touch across a range of regulatory tools deployed by the Fed, which is charged with monitoring some of the country's largest lenders.

Only a third of the largest U.S. banks received satisfactory ratings in every criterion in the Fed's supervision and regulation report last year, which sparked criticism from the institutions.

The central bank uses ratings to judge the financial health and risk management capability of banks based on their capital, liquidity, and governance.

The Fed has already begun the process of determining next year's bank scores, but Bowman is expected to change the way those scores are calculated, the report added.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Dallas Fed March Manufacturing Index Declines More than Expected, Indicates Faster Contraction
Dallas Fed March Manufacturing Index Declines More than Expected, Indicates Faster Contraction
Mar 25, 2024
10:44 AM EDT, 03/25/2024 (MT Newswires) -- The Dallas Federal Reserve's monthly manufacturing index declined to a reading of minus 14.4 in March from minus 11.3 in February, compared with expectations for a slight decrease to a reading of minus 11.5 in a survey compiled by Bloomberg as of 7:45 am ET. The index still indicates contraction, which is in...
February Chicago Fed National Activity Index Rebound More Than Expected
February Chicago Fed National Activity Index Rebound More Than Expected
Mar 25, 2024
08:40 AM EDT, 03/25/2024 (MT Newswires) -- The Chicago Federal Reserve Bank's monthly National Activity Index rebounded to a reading of 0.05 in February from a downwardly revised minus 0.54 in January, compared with expectations for a smaller increase to minus 0.34 in survey of analysts compiled by Bloomberg as of 7:45 am ET. The three-month moving average declined to...
US Dollar Falls Early Monday, Attention Focuses This Week on Home Sales, GDP, Personal Income, Powell
US Dollar Falls Early Monday, Attention Focuses This Week on Home Sales, GDP, Personal Income, Powell
Mar 25, 2024
07:47 AM EDT, 03/25/2024 (MT Newswires) -- The US dollar declined against its major trading partners early Monday ahead of the release of the Chicago Federal Reserve's National Activity Index for February at 8:30 am ET, new home sales for February at 10:00 am ET and the Dallas Fed's monthly manufacturing index for March at 10:30 am ET. Atlanta Fed...
Federal Reserve expected to cut rates, lift Biden's prospects
Federal Reserve expected to cut rates, lift Biden's prospects
Mar 25, 2024
WASHINGTON (Reuters) - The U.S. Federal Reserve looks on track to cut interest rates as the presidential campaign season heats up, potentially delivering President Joe Biden a boost as polls show Americans dislike his handling of the economy. The Fed could play an outsized - and potentially uncomfortable - election-year role by helping shape attitudes about stubbornly high inflation and...
Copyright 2023-2026 - www.financetom.com All Rights Reserved