# 2025-19945: Fed Revamps Rating System for Big Banks and Insurers

2025-19945, Revisions to the Large Financial Institution Rating System and Framework for the Supervision of Insurance Organizations, is a Federal Register notice from Federal Reserve System published 2025-11-17, effective 2026-01-16 (as of 2026-06-08).

- Canonical: https://policyrisk.com/federal-register/2025-19945
- As of: 2026-06-08
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Document number: 2025-19945
- Title: Revisions to the Large Financial Institution Rating System and Framework for the Supervision of Insurance Organizations
- Type: Notice
- Agencies: Federal Reserve System
- Citation: 90 FR 51329
- Published: 2025-11-17
- Effective: 2026-01-16
- Comments close: not stated
- Significant: no
- Touches household money: no
- Regulation identifier numbers: none
- Last updated: 2026-06-08

## In one line

Fed Revamps Rating System for Big Banks and Insurers

## Summary

Starting January 16, 2026, big banks and insurance companies will be rated with a clearer, fairer system that better shows which ones are strong and well-managed. The new rules drop automatic penalties for certain low scores, making enforcement more flexible based on each case. This update helps keep our financial system safe without being too harsh or confusing.

## Abstract

The Board is adopting a final notice to revise its Large Financial Institution (LFI) rating system (LFI Framework) and the rating system for depository institution holding companies significantly engaged in insurance activities (Insurance Supervisory Framework, together with the LFI Framework, Frameworks) to more appropriately identify as "well managed" firms that have sufficient financial and operational strength and resilience to maintain safe and sound operations through a range of conditions, including stressful ones. The final notice also replaces the presumption in the Frameworks that firms with one or more Deficient-1 component ratings will be subject to a formal or informal enforcement action with a statement that such firms may be subject to a formal or informal enforcement action, depending on particular facts and circumstances. The final notice also removes a reference to reputational risk in the Insurance Supervisory Framework.

## Effects PRIA read

- New "Well Managed" Test for Large Firms: benefit, medium. Starting January 16, 2026, a firm subject to the Federal Reserve's Large Financial Institution or Insurance Supervisory Frameworks will be considered "well managed" if it has at least two component ratings of Broadly Meets Expectations or Conditionally Meets Expectations and no more than one Defici…
- No Automatic Enforcement for Single Deficient-1: benefit, medium. Beginning January 16, 2026, the Frameworks no longer presume that a firm with one or more Deficient-1 component ratings will be subject to a formal or informal enforcement action; instead, such firms may be subject to enforcement action depending on particular facts and circumstances. The Framework…
- Deficient-2 Still Triggers Enforcement Presumption: cost, high. The final notice keeps the presumption that the Board will impose a formal enforcement action on any firm with one or more Deficient-2 component ratings. That presumption remains in place under the revised Frameworks effective January 16, 2026.

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- [2026-08298](https://policyrisk.com/federal-register/2026-08298): Regulatory Capital Rule: Community Bank Leverage Ratio Framework, 2026-04-29
- [2026-05960](https://policyrisk.com/federal-register/2026-05960): Regulatory Capital Rules: Regulatory Capital and Standardized Approach for Risk-Weighted Assets, 2026-03-27
- [2025-21625](https://policyrisk.com/federal-register/2025-21625): Regulatory Capital Rule: Revisions to the Community Bank Leverage Ratio Framework, 2025-12-01
- [2025-21626](https://policyrisk.com/federal-register/2025-21626): Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank H…, 2025-12-01
- [2025-12787](https://policyrisk.com/federal-register/2025-12787): Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank H…, 2025-07-10
- [2026-22827](https://policyrisk.com/federal-register/2026-22827): Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company, 2026-11-09

## Sources
- [2025-19945 on federalregister.gov](https://www.federalregister.gov/documents/2025/11/17/2025-19945/revisions-to-the-large-financial-institution-rating-system-and-framework-for-the-supervision-of)
- [2025-19945 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2025-11-17/pdf/2025-19945.pdf)

## Related
- [Previous: 2025-19942, Federal Reserve Action To Expand Fedwirer® Funds Service and National Settlemen…](https://policyrisk.com/federal-register/2025-19942)
- [Next: 2025-19946, Combined Notice of Filings #2](https://policyrisk.com/federal-register/2025-19946)
- [All Federal Register documents](https://policyrisk.com/federal-register)

Source: PRIA, https://policyrisk.com/federal-register/2025-19945 (as of 2026-06-08).