For more information, see https://www.federalreserve.gov/supervisionreg/large-institution-supervision.htm. 3  -8notable exceptions are when we find material deficiencies at a bank and take a public enforcement action to correct them. Supervisory ratings are an interesting and special case because they are confidential communications that can have public consequences.
A supervisory rating is a confidential assessment of the strength of a bank in one or more risk areas, or, in some cases, a composite view of the aggregate risks facing the bank. Ratings have the obvious benefit of summarizing the overall condition of a firm.