Fed Makes It Easier for Banks to Get ‘Well Managed’ Rating (1)

The Federal Reserve said Wednesday it had finalized changes to its supervisory rating framework for large banks, easing the requirements for certain lenders.

The Fed can now consider a firm with one deficient-1 rating to be “well managed,” according to a release. Any more than one deficient-1 rating or a more negative deficient-2 rating for any component would be considered not “well managed.”

Each component of the framework has four potential ratings: broadly meets expectations, conditionally meets expectations, deficient-1, or deficient-2. Firms that are not well managed face limitations on certain activities and acquisitions.

“Bank ratings should reflect overall safety ...