Understanding the Federal Reserve’s Large Financial Institution (LFI) Rating System

This course provides a practical, regulator-aligned overview of the Federal Reserve’s Large Financial Institution (LFI) Rating System and how it is used to assess the safety, soundness, and resilience of large banking organizations. Participants will gain a clear understanding of how the Federal Reserve evaluates capital planning, liquidity risk management, and governance and controls, and why these components are assessed independently rather than through a single composite score.The course focuses on supervisory expectations, common drivers of rating outcomes, and the behaviors regulators look for when determining whether an institution broadly meets expectations, conditionally meets expectations, or is considered deficient. Emphasis is placed on governance, issue management, and management responsiveness—areas that frequently influence supervisory outcomes.Designed for risk, compliance, audit, and management professionals, this course bridges regulatory theory with real-world application, helping participants understand how their day-to-day decisions, documentation, and remediation practices impact regulatory ratings and supervisory trust.