Pass Rating

What does it mean

Regulatory Definition: A credit that is in good standing and is not rated special mention or classified in any way.  Please see the following other types for additional detail regarding loans that do not receive the pass designation:

 

Why does it matter

Bank regulators closely monitor and exert significant influence over bank performance through their rules and guidance. As a result, it is crucial for banks to comprehend regulatory terminology. This understanding enables bankers to identify loan relationships that align with regulatory criteria or to defend those that don't meet the specified standards.

 

Other Relevant Terms

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A bit about me

Greetings! I'm Clay Sharkey, and there is nothing I like more than assisting others in achieving their goals. I firmly believe that by enhancing a banker's understanding of their customer's' business, they can provide superior service. This superior service, in turn, leads to stronger relationships for the bank, improved performance for the businesses, and better experiences for our communities.  Win-win-win.