U.S. Banking Regulators Plan to Reshape Rating Framework
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15 hours ago
0mins
Source: seekingalpha
- Rating Framework Reform: U.S. banking regulators are expected to introduce a plan this week to reshape the existing CAMELS rating framework, which assesses banks on capital adequacy, asset quality, management, earnings, liquidity, and market risk sensitivity, thereby influencing the level of scrutiny and capital requirements for banks.
- Focus on Financial Conditions: The new proposal will direct examiners to concentrate on a bank's financial conditions and associated material risks rather than on more subjective issues like 'reputational risk,' which will enhance the precision of oversight and effectively address potential risks.
- Public Comment Period: The plan will undergo a public comment period, allowing regulators to gather feedback to ensure the new framework's effectiveness and feasibility, while also reflecting the need to adapt to the competitive landscape between banks and non-bank financial institutions.
- Regulatory Policy Adjustments: Regulators have expressed support for easing regulations focused on subjective issues, particularly as highlighted by Fed Vice Chair Michelle Bowman, who noted that tailoring certain regulations will enable banks to compete more effectively with non-bank financial institutions, demonstrating flexibility in regulatory policies.
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Analyst Views on JPM
Wall Street analysts forecast JPM stock price to rise
19 Analyst Rating
11 Buy
7 Hold
1 Sell
Moderate Buy
Current: 297.810
Low
260.00
Averages
341.38
High
400.00
Current: 297.810
Low
260.00
Averages
341.38
High
400.00
About JPM
JPMorgan Chase & Co. is a financial holding company. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. The Company operates through three segments: Consumer & Community Banking (CCB), Commercial & Investment Bank (CIB), and Asset & Wealth Management (AWM). Its CCB segment offers products and services to consumers and small businesses through bank branches, ATMs, digital and telephone banking. Its CIB segment consists of banking and payments and markets and securities services, and offers a suite of investment banking, lending, payments, market-making, financing, custody and securities products and services to a global base of corporate and institutional clients. AWM segment offers investment and wealth management solutions. It offers multi-asset investment management solutions, retirement products and services, brokerage, custody, estate planning, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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