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Fed releases guidance on upgrading community bank ratings

The Federal Reserve at the beginning of this month issued guidance on the factors community bank examiners should consider in evaluating whether an institution's supervisory rating should be upgraded. The guidance applies particularly to Fed-supervised state member banks with $10 billion or less in assets, but also covers other types of community institutions.

“The guidance is being issued to ensure that upgrades occur in a timely manner when the banking organizations have made the requisite progress in addressing any supervisory concerns that had prompted lower ratings,” the Fed said in a press release.

You can read the guidance by clicking here.

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