Patrick Parkinson, the Federal Reserve’s chief bank regulator, said today that nearly one out of three U.S. banks have supervisory ratings deemed unsatisfactory.

“Around 30 percent of all banks have less than satisfactory supervisory ratings,” Parkinson said during the American Bankers Association’s annual government relations summit in Washington, D.C.

Parkinson, director of the central bank’s division of banking supervision and regulation, said that although the nation’s banks’ asset quality is “stabilizing,” the “conditions in real estate markets are still very difficult” and the banking system is “still in the repair and recovery stage.”

The central bank is implementing a regulatory overhaul that creates a process for unwinding large financial institutions, restricts banks’ trading for their own accounts and requires tougher oversight of firms deemed essential to stability of the financial system. The new rules are part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, signed into law by President Barack Obama last July.

Parkinson said tougher regulations for the largest bank holding companies, designated by the law as those with over $50 billion in assets, will “reflect the degree of systemic risk that individual banking organizations seem to pose.”

“We’re not going to treat a $54 billion bank holding company as if it were Citigroup, Bank of America or JPMorgan,” Parkinson said in response to audience questions.

“Nobody really regards $50 billion as systemically risky,” he said. “We have to come up with some charge, but thank God there’s this gradation provision.”