Composite Ratings Definitions

Question 1

close supervisory attention is required;

Answer 1

4

Question 2

Failure appears unlikely

Answer 2

3

Question 3

are of greatest supervisory concern

Answer 3

5

Question 4

institutions in this group pose a risk the the DIF

Answer 4

4

Question 5

management may lack ability or willingness to effectively address weaknesses

Answer 5

3

Question 6

Exhibit the strongest performance and risk management practices

Answer 6

1

Question 7

require more than normal supervisory concern

Answer 7

3

Question 8

give no cause for supervisory concern

Answer 8

1

Question 9

often contain inadequate risk management practices

Answer 9

5

Question 10

RM practices are generally unacceptable

Answer 10

4

Question 11

generally exhibit unsafe and unsound practices or conditions

Answer 11

4

Question 12

volume and severity of problems are beyond Mgmt’s ability or willingness to control or correct

Answer 12

5

Question 13

weaknesses and problems are not being satisfactorily address or resolved

Answer 13

4

Question 14

magnitude of the deficiencies generally will not cause a component to be rated more severely than 4;

Answer 14

3

Question 15

no material supervisory concerns.

Answer 15

2

Question 16

Ongoing supervisory attention is necessary

Answer 16

5

Question 17

RM practices are satisfactory

Answer 17

2

Question 18

resistant to outside influences such as economic instability

Answer 18

1

Question 19

risk management practices may be less than satisfactory;

Answer 19

3

Question 20

most capable of withstanding the vagaries of business conditions

Answer 20

1

Question 21

critically deficient performance;

Answer 21

5

Question 22

failure is a distinct possibility if the problems and weaknesses are not satisfactorily addressed and resolved.

Answer 22

4

Question 23

Failure is highly probable

Answer 23

5

Question 24

Fundamentally sound;

Answer 24

2

Question 25

generally less capable of withstanding business fluctuations

Answer 25

3

Question 26

immediate outside financial or other assistance is needed in order for the institution to be viable;

Answer 26

5

Question 27

Only moderate weaknesses are present and are well within the BOD’s and management’s capabilities and willingness to correct;

Answer 27

2

Question 28

no component rating should be more severe than a 3;

Answer 28

2

Question 29

pose a significant risk to deposit insurance fund.

Answer 29

5

Question 30

generally not capable of withstanding business fluctuations;

Answer 30

4

Question 31

any weaknesses are minor and can be handled in routine manner by the BOD and management

Answer 31

1

Question 32

serious financial or managerial deficiencies that result in unsatisfactory performance;

Answer 32

4

Question 33

Exhibit some degree of supervisory concern in one or more component areas;

Answer 33

3

Question 34

Problems range from severe to critically deficient

Answer 34

4

Question 35

Sound in every respect;

Answer 35

1

Question 36

Extremely unsafe and unsound practices or conditions;

Answer 36

5

Question 37

stable and capable of withstanding business fluctuations;

Answer 37

2

Question 38

generally have components rated 1 or 2

Answer 38

1

Question 39

Supervisory response is informal and limited

Answer 39

2

Question 40

Exhibit combination of weaknesses that may range from moderate to severe

Answer 40

3

Question 41

In most cases, formal enforcement action is necessary to address the problems

Answer 41

4

Question 42

May include formal or informal enforcement actions

Answer 42

3

Question 43

Are more vulnerable to outside influences

Answer 43

3

Question 44

In substantial compliance with laws and regs

Answer 44

1 OR 2

Question 45

May be in significant noncompliance with laws and regs

Answer 45

3 OR 4