The Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve System issued a notice of proposed rulemaking to revise the Community Bank Leverage Ratio (CBLR) framework to encourage broader use of the CBLR and reduce regulatory burden for community banks, consistent with section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. For the FDIC, the proposal applies to FDIC-supervised institutions with less than USD 10 billion in total consolidated assets that are not advanced approaches banks. The proposal would lower the CBLR requirement from 9 percent to 8 percent, extend the grace period from two quarters to four quarters for banks that fall out of qualifying status or need to transition back to risk-based capital requirements, and limit use of the grace period to a maximum of eight of the prior twenty quarters. Comments are due 60 days after publication in the Federal Register.
Federal Deposit Insurance Corporation 2025-11-25
Federal Deposit Insurance Corporation and other US banking agencies propose lowering the Community Bank Leverage Ratio to 8 percent and extending the grace period to four quarters
The Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and Federal Reserve Board proposed revising the Community Bank Leverage Ratio (CBLR) framework to enhance adoption and ease regulatory burdens. The proposal lowers the CBLR requirement from 9% to 8% and extends the grace period for non-qualifying banks from two to four quarters, applicable to FDIC-supervised institutions with less than USD 10 billion in assets.