[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3379 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 3379
To amend the Federal Financial Institutions Examination Council Act of
1978 to require the Federal financial institutions regulatory agencies
to update the CAMELS Rating System, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 14, 2025
Mr. Fitzgerald introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Federal Financial Institutions Examination Council Act of
1978 to require the Federal financial institutions regulatory agencies
to update the CAMELS Rating System, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Halting Uncertain Methods and
Practices in Supervision Act of 2025'' or the ``HUMPS Act of 2025''.
SEC. 2. FINDINGS.
Congress finds that--
(1) CAMELS ratings (Capital adequacy, Asset quality,
Management, Earnings, Liquidity, and Sensitivity to market
risk) are a critical tool for evaluating the safety and
soundness of financial institutions, and the basis for
determining significant regulatory matters such as the
evaluation for mergers and acquisitions and a bank's deposit
insurance premiums;
(2) the CAMELS rating system relies heavily on examiner
judgment, which can lead to subjective and inconsistent ratings
across similar institutions;
(3) establishing clear, objective measures for each CAMELS
component and their relative weighting in determining composite
ratings will promote fairness, consistency, and accountability
in supervisory assessments; and
(4) examination and supervision, as well as the CAMELS
rating system, should focus on a financial institution's core
financial condition or solvency.
SEC. 3. AMENDMENTS TO THE CAMELS RATING SYSTEM.
(a) In General.--The Federal Financial Institutions Examination
Council Act of 1978 (12 U.S.C. 3301 et seq.) is amended by adding at
the end the following:
``SEC. 1012. AMENDMENTS TO THE CAMELS RATING SYSTEM.
``(a) In General.--The Council shall make recommendations to amend
the Uniform Financial Institutions Rating System, and the CAMELS
components thereunder, to--
``(1) establish clear and objective criteria for assessing
each CAMELS component;
``(2) revise the weighting of each CAMELS component to
derive a composite rating that more accurately reflects the
financial condition and risk profile of the financial
institutions being rated;
``(3) either--
``(A) eliminate the management component of the
CAMELS rating system; or
``(B) revise the management component of the CAMELS
rating system to limit the assessment under such
component to objective measures of the governance and
controls used to manage an institution's risk profile;
and
``(4) ensure that composite ratings are determined based on
a transparent methodology that is limited to the objective
criteria established for each CAMELS component.
``(b) Rulemaking.--Not later than 12 months after the Council makes
the recommendations required under subsection (a), the Federal
financial institutions regulatory agencies shall, jointly, issue rules
to carry out the recommendations described under subsection (a).
``(c) Public Comment Period.--In issuing the rules required under
subsection (b), the Federal financial institutions regulatory agencies
shall--
``(1) publish a notice of proposed rulemaking with respect
to such rules; and
``(2) provide for a public comment period of not less than
60 days.
``(d) Rule of Construction.--Nothing in this section may be
construed to limit the authority of the Federal financial institutions
regulatory agencies to take supervisory or enforcement actions to
ensure the safety and soundness of financial institutions.''.
(b) Well Managed Definition.--Section 2(o)(9)(A) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841(o)(9)(A)) is amended--
(1) by striking ``achievement of'' and all that follows
through ``a CAMEL'' and inserting ``achievement of a CAMEL'';
(2) by striking ``; and'' and inserting a period; and
(3) by striking clause (ii).
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