![]() |
![]() |
![]() |
![]() |
![]() |
Home > News & Events > Inactive Financial Institution
Letters |
![]() |
|
![]() |
![]() |
Inactive Financial Institution Letters |
FIL-17-97
|
||||||||
Attached is additional guidance on the revised Uniform Financial
Institutions Rating System (UFIRS) or "CAMELS" rating system that was
issued recently by the Task Force on Supervision of the Federal
Financial Institutions Examination Council.
The question and answer document was developed on an
interagency basis
and coordinated with the Conference of State Bank
Supervisors. The
document explains and clarifies the revised UFIRS, and is
being
distributed to bankers and examiners to help ensure uniform
implementation of the revised rating system.
The majority of the questions address the new "S"
component, called
"Sensitivity to Market Risk." For most
institutions without active
foreign exchange or trading operations, market
risk primarily reflects
exposure to changes in interest rates. The FDIC
issued new interest
rate risk examination procedures last fall that
guide examiners toward
a qualitative assessment of an institution's
interest rate risk
management and exposure. These examination
procedures are designed to
focus examiner resources on areas requiring
additional attention,
thereby reducing the burden on institutions.
Additional copies of the Q&A document
can be obtained from the FDIC's
home page at www.fdic.gov/banknews/fils.
If you have any questions
about the attachment or the revised
CAMELS rating system, please
contact your Division of Supervision
Regional Office or Daniel M.
Gautsch, Examination Specialist, at
(202) 898-6912. Specific
questions on the new "S" component can
be directed to John Feid,
Chief, Risk Management Unit, Office of
Capital Markets, at (202) 898-8649.
Attachment
(below)
Distribution:
FDIC-Supervised
Banks
(Commercial and
Savings)
NOTE:
Paper
copies
of
FDIC
financial
institution
letters
may
be
obtained
through
the
FDIC's
Public
Information
Center,
801
17th
Street,
N.W.,
Room
100,
Washington,
D.C.
20434
((703)
562-2200
or
800-276-6003).
OFFICE OF THE COMPTROLLER OF THE CURRENCY OFFICE OF THRIFT SUPERVISION BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM FEDERAL DEPOSIT INSURANCE CORPORATION ---------------------------------------------------------------- March 4, 1997
On
March
4,
1997,
the
Task
Force
on
Supervision
of
the
Federal
Financial
Institutions
Examination
Council
approved
the
issuance
of
common
questions
and
answers
about
the
recently
revised
Uniform
Financial
Institutions
Rating
System.
The
Office
of
the
Comptroller
of
the
Currency
(OCC),
the
Office
of
Thrift
Supervision
(OTS),
the
Federal
Reserve
Board
(FRB),
and
the
Federal
Deposit
Insurance
Corporation
(FDIC)
collectively
developed
common
responses
to
questions
asked
to
date
by
bankers
and
examiners
regarding
the
revised
rating
system.
The
responses
were
coordinated
with
the
Conference
of
State
Bank
Supervisors.
The
purpose
of
the
questions
and
answers
is
to
provide
additional
interagency
guidance
and
clarification
regarding
the
revised
rating
system.
On
December
9,
1996,
the
Federal
Financial
Institutions
Examination
Council
(FFIEC)
adopted
the
revised
Uniform
Financial
Institutions
Rating
System
(UFIRS
or
CAMELS
rating
system).
The
UFIRS
is
an
internal
rating
system
used
by
the
federal
and
state
regulators
for
assessing
the
soundness
of
financial
institutions
on
a
uniform
basis
and
for
identifying
those
insured
institutions
requiring
special
supervisory
attention.
A
final
notice
was
published
in
the
Federal
Register
on
December
19,
1996
(61
FR
67021),
effective
January
1,
1997.
The
major
changes
to
UFIRS
include
an
increased
emphasis
on
the
quality
of
risk
management
practices
and
the
addition
of
a
sixth
component
called
"Sensitivity
to
Market
Risk."
The
updated
rating
system
also
reformats
and
clarifies
component
rating
descriptions
and
component
rating
definitions,
revises
composite
rating
definitions
to
parallel
the
other
changes
in
the
rating
system,
and
highlights
risks
that
may
be
considered
in
assigning
component
ratings.
The
attached
questions
and
answers
are
being
distributed
to
bankers
and
examiners
to
ensure
consistent
and
uniform
implementation
of
the
revised
rating
system.
|
Last Updated 11/13/2018 | communications@fdic.gov |