The agent institution test becomes a CAMELS rating of 1, 2, or 3
What the document says“is amended by striking ``was found to have a composite condition of outstanding or good'' and inserting ``was assigned a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system)''.”
The section amends the definition of an agent institution in section 29(i)(2)(A)(i)(I) of the Federal Deposit Insurance Act, replacing a test of being found in outstanding or good condition with a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System or an equivalent.
What the document actually says“is amended by striking ``was found to have a composite condition of outstanding or good'' and inserting ``was assigned a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system)''.”
Words about a bank being in outstanding or good shape come out. New words go in. They name a rating of 1, 2, or 3 on a standard scale.
Bank examiners give each bank a score. The scale runs from 1 to 5, with 1 the best. The new test names the numbers rather than words.
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