In particular, they play a role in interstate branching requirements and in determining whether or not holding companies can engage in expanded financial activities.
See George R. Juncker, “A New Supervisory System for Rating Banks,” FRBNY Quarterly Review, Summer 1978, https://www.newyorkfed.org/medialibrary/media/research/quarterly_review/1978v3/v3n2article8.pdf; Statement of Brenton C. Leavitt, Board of Governors of the Federal Reserve System, before the Commerce, Consumer, and Monetary Affairs Subcommittee of the House Committee on Government Operations, Federal Reserve Bulletin 62 (February 1976), https://fraser.stlouisfed.org/title/federal-reserve-bulletin-62/february-1976-21494/fulltext; see also James Bergin and Kevin Stiroh, Why Do Supervisors Rate Banking Organizations?