Market risk and risk management practices have traditionally been taken into account when evaluating a bank. The relative importance given to either category depends on the circumstances particular to the bank being examined. Composite and Component Ratings - Peer data are used by examiners as part of the evaluation process and may be used in assigning a rating. However, peer data should not be relied upon in isolation to determine the rating. Each component is related to one or more other components.
Examiners consider relevant factors and their relationship among components when assigning ratings.
Supervision by risk prospectively assesses the quantity and direction of risks as well as the quality of risk management. The revised rating system should not have a significant effect on noncomplex community bank examinations. For these banks, there is no need to obtain additional information or perform additional examination procedures to determine component and composite ratings. Its mission is to ensure a safe, sound and competitive national banking system that supports the citizens, communities and economy of the United States.