HUMPS Act of 2025

The HUMPS Act of 2025 would overhaul how the CAMELS rating system—used by U.S. bank supervisors to assess safety and soundness—works. It requires the Federal Financial Institutions Examination Council (FFIEC) to recommend clear, objective criteria for each CAMELS component (Capital adequacy, Asset quality, Management, Earnings, Liquidity, and Sensitivity to market risk) and to revise how those components feed into a bank’s composite rating. A key push is to either eliminate the current “Management” component or restrict it to objective measures of governance and controls. The bill also directs ratings to reflect compliance with applicable anti-money laundering and counter-terrorist financing laws and related regulations. In addition, it creates a formal rulemaking process: the agencies must issue joint rules within 12 months after the recommendations, following a proposed rule and a public comment period of at least 90 days. A definitional change to the Bank Holding Company Act is also included, aligning “well managed” language with CAMELS. Overall, the bill aims to reduce subjectivity in ratings and emphasize objective, transparent criteria and core solvency.