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Director's Corner
San Francisco Region Director's College Computer- Based Training
Composite Rating and Enforcement Actions
Composite Rating
Answer to the Composite Rating Section of the Training Module:
Examiners assigned the bank a composite rating of "3". The rating reflects less-than satisfactory risk management practices in most of the CAMELS components. It also reflects the bank's elevated risk profile caused by inadequate management and board oversight, leading to deterioration in the loan portfolio. You may have assigned a "4" rating, which is not uncommon for directors going through this course. The problems in this bank are certainly of a serious nature but probably not yet severe enough to warrant a composite "4" since the problems appear to be relatively new to this bank. The examiners will likely address these deficiencies with some type of enforcement action.
Now let's move on to the enforcement actions module.
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