HUMPS Act of 2025

House Votes

This bill tells federal bank regulators to update how they grade banks using the CAMELS system. The goal is to make scores more fair and consistent by using clear, objective measures for each part of CAMELS (Capital, Asset quality, Management, Earnings, Liquidity, and Sensitivity to market risk). These grades matter because they can affect bank mergers and a bank’s deposit insurance costs. The bill also says the final score should reflect a bank’s real financial health, and it must consider anti–money laundering and counter–terrorist financing compliance. The “Management” part of CAMELS must either be removed or narrowed to only objective checks of governance and risk controls. The grading method must be transparent. It also updates how “well managed” is defined for bank groups so it lines up with the CAMELS approach.

Key points

• Who is affected: Banks and bank holding companies, and the federal agencies that oversee them.
• What changes: Clear, objective criteria and weights for CAMELS; possible removal or narrowing of the “Management” component; required consideration of anti–money laundering rules; a transparent scoring method; and an updated “well managed” definition.
• When: After the Council recommends updates, the agencies must issue joint rules within 12 months, with at least 90 days for public comment.

Why it matters: More objective and transparent bank ratings aim to make supervision fairer across similar banks and keep the focus on a bank’s core financial condition.