Federal Reserve Board affirms that supervisory ratings will continue to incorporate quantitative and qualitative assessments of banks’ risk‑management processes

Event date

June 23, 2025

Quotes that support claims

The change applies across all banks under the Fed’s watch, and examiners will now only look at risks that directly affect money, operations, or laws. “The Board has started the process of reviewing and removing references to reputation and reputational risk,” the Fed said in a statement.

"The formal rating is intended to highlight and incorporate both the quantitative and qualitative aspects of an examiner’s review of an institution’s overall process for identifying, measuring, monitoring, and controlling risk and to facilitate appropriate follow-up action," the Board of Governors of the Federal Reserve System said in a letter on Monday.

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Week 26 of 2025