U.S. Regulators Plan to Revise Secret Bank Ratings

U.S. regulators could release this week a plan to change how bank examiners assign confidential ratings to financial institutions. The ratings are used internally to assess bank safety and soundness. Lenders have long sought greater transparency in the process.

The overhaul would modify the current system without making the ratings public. Regulators have not yet released details on the specific revisions under consideration. The move is expected to address concerns from banks about how the ratings are determined and applied.

Examiners currently use the ratings to flag potential risks at institutions. The ratings remain confidential and are not disclosed to the public or to the banks themselves in full detail. No timeline for final implementation has been announced.