Davis Polk partner and Financial Institutions practice co-head Margaret Tahyar was quoted in American Banker discussing the recent proposed changes to the CAMELS rating system.

The proposed changes would remove the “special consideration” of management, the “M” in CAMELS, that many believe gives it primacy over the other factors.

“I’ve lived in a post-crisis environment where the management component has been inappropriately used, over-indexed, and a catch-all phrase,” Margaret said. “I’m not saying it can’t be used correctly, I’m just saying my experience since 2010 has been that it’s not being used in the right way most of the time.”

“Ready or not, bank examination is changing for good,” American Banker (June 8, 2026) (subscription required)

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