Fed Releases Guidance On Community Bank Upgrades

Law360, New York (March 2, 2012, 8:07 PM EST) -- The Federal Reserve Board issued guidance for member banks with less than $10 billion in consolidated assets Friday, laying out the steps state member community banks need to take in order for the Fed to consider bumping up their ratings.

The guidance stresses the importance of showing sustainable improvement in financial condition and risk management, and seeks to ensure that upgrades occur in a timely fashion once the institutions make enough progress addressing issues that led to a lower rating. It also seeks to clarify the application...
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