US regulators unveil plans to reshape bank rating process

This plan, released on Tuesday, will reshape the framework known as CAMELS. Examiners use this framework to rate banks on capital adequacy, asset quality, management capability, earnings, liquidity, and sensitivity to market risk. These ratings form an overall rating that determines the level of scrutiny a financial institution faces, the business activities it can undertake, and the amount of capital it must hold. The public comment period for this plan is 90 days.