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FRB Solicits Comments on Application of Rating System to Savings and Loan Holding Companies

The Board of Governors of the Federal Reserve System ("FRB") solicited comments on a proposal that would apply the existing FRB rating system for bank holding companies to savings and loan holding companies. The FRB rating system would not apply to savings and loan holding companies engaged in "significant" insurance or commercial activities.

The FRB stated that the rating system is used, in part, to "determine the safety and soundness of a financial institution" and to ensure consistent standards in the supervision of bank holding companies and savings and loan holding companies.

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