US Regulators Poised to Reshape Secret Ratings Process for Banks

US regulators are poised to unveil as soon as this week a plan that would overhaul how examiners secretly rate banks, according to people familiar with the matter, a move likely to be cheered by lenders.

The plan would reshape the framework known as CAMELS that examiners use to grade banks on capital adequacy, asset quality, management, earnings, liquidity and sensitivity to market risk. Those grades create an overall rating that determines the degree of scrutiny a financial institution faces, the activities it can engage in and how much capital it has to hold.