The proposed new rating system was published for comment in July of this year, and the system is expected to become effective in January 2005.
The proposed bank holding company rating system is expected to (1) better emphasize risk management and the importance of the control environment; (2) introduce a more comprehensive, more adaptable framework for analyzing and rating financial factors based on the unique structure of each holding company; and (3) for the first time, provide an explicit framework for rating the impact of the nondepository entities of a holding company on its affiliated depository institutions.