Banks With One ‘Deficient’ Rating Could Still Be Considered ‘Well Managed’ Under New Federal Reserve Proposal

The U. S. Federal Reserve is mulling a rule change that would allow banks with one “deficient” rating to still be considered “well managed. ” The Fed’s current large financial institution (LFI) rating framework includes three components: capital, liquidity and governance/controls, each of which has four potential ratings: broadly meets expectations, conditionally meets expectations, deficient-1 and deficient-2 source: https://dailyhodl.com/2025/07/11/banks-with-one-deficient-rating-could-still-be-considered-well-managed-under-new-federal-reserve-proposal/