Composite 2 rating
Institutions with this number have no material supervisory concerns. In general, none their component ratings should be worse that 3. These banks are still sound and stable and in high compliance with all regulations and laws.
Composite 3 rating
Banks or other institutions with this number have some moderate and severe weaknesses but none their component ratings should be worse that 4. Here is a requirement of more than a normal supervision.
Composite 4 rating
Banks with this rating may fail if they don't pay an adequate attention to their problems. Here is a real risk to the deposit insurance fund.
Composite 5 rating
Extremely unsafe and unsound - Here is a significant risk to the deposit insurance fund and bank failure is highly probable.
Institutions with this number have no material supervisory concerns. In general, none their component ratings should be worse that 3. These banks are still sound and stable and in high compliance with all regulations and laws.
Composite 3 rating
Banks or other institutions with this number have some moderate and severe weaknesses but none their component ratings should be worse that 4. Here is a requirement of more than a normal supervision.
Composite 4 rating
Banks with this rating may fail if they don't pay an adequate attention to their problems. Here is a real risk to the deposit insurance fund.
Composite 5 rating
Extremely unsafe and unsound - Here is a significant risk to the deposit insurance fund and bank failure is highly probable.