WASHINGTON - The Federal Reserve Board said Tuesday that it will begin disclosing its ratings of foreign banks by yearend.
The Fed said it will share the federal bank examiners' "strength of support assessment" scores with the banks' senior management and supervisors in their home countries.
In a letter sent Monday to the examiners, Richard Spillenkothen, the Fed's director of banking supervision and regulation, wrote that disclosing the rankings "should strengthen communications with bank management, as well as enhance information sharing, collaboration, and coordination" between authorities in the United States and other countries "in the supervision of multinational banking organizations."
The central bank also said it plans to pare its rating system to a three-point scale, because officials found that scores under the current five-point system are redundant and hard to distinguish. The new ratings will go from 1, for banks with the lowest supervisory concern, to 3, for those with the highest level of concern.