119-hr3379

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3379 Reported in House

    (RH) ]

<DOC>

 Union Calendar No. 136
119th CONGRESS
 1st Session
 H. R. 3379

 [Report No. 119-170]

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

 June 25, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
 in italic]
[For text of introduced bill, see copy of bill as introduced on May 14, 
 2025]

_______________________________________________________________________

 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 factors affecting 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;
 ``

    (4) ensure that composite ratings consider the financial 
 institution's compliance with--
 ``
        (A) section 21 of the Federal Deposit Insurance 
 Act (12 U.S.C. 1829b);
 ``
        (B) chapter 2 of title I of Public Law 91-508 (12 
 U.S.C. 1951 et seq.);
 ``
            (C) subchapter II of chapter 53 of title 31, 
 United States Code; and
 ``
            (D) any other applicable requirements and 
 implementing regulations relating to the prevention of 
 money laundering and terrorist financing; and
 ``

    (5) 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 
 90 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) .
 Union Calendar No. 136

119th CONGRESS

 1st Session

 H. R. 3379

 [Report No. 119-170]

_______________________________________________________________________

 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.

_______________________________________________________________________

 June 25, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed