ICBA encouraged regulators to make some components of the CAMELS rating system more objective by basing scores more heavily on financial metrics. For instance, ICBA wrote in a comment letter, community banks that comply with applicable regulatory capital requirements should receive a top score for capital absent any issues with concentration risk or debt obligations.
Responding to the FDIC and Federal Reserve request for feedback, ICBA said 79 percent of community bankers who responded to a recent ICBA survey said they were generally satisfied with how they were rated in supervisory exams. Further, 86 percent said they would not support scrapping the CAMELS system altogether.
Read ICBA’s comment letter.