Proposed community bank leverage ratio framework discussed Dec. 18

Three federal bank regulatory agencies will hold a 90-minute teleconference Dec. 18 for bankers to discuss the optional community bank leverage ratio (CBLR) framework proposed for qualifying institutions under $10 billion in assets.

According to a Financial Institution Letter (FIL-85-2018) issued Tuesday by the Federal Deposit Insurance Corp. (FDIC), the agencies – FDIC as well as the Federal Reserve Board and Office of the Comptroller of the Currency (OCC) – will cover topics such as the definition of a qualifying community banking organization, the definition of CBLR tangible equity, and compliance with the proposed framework.

Under the agencies’ joint proposal, awaiting publication in the Federal Register, most depository institutions and depository institution holding companies that have less than $10 billion in total consolidated assets, that meet risk-based qualifying criteria, and that have a community bank leverage ratio (as defined in the proposal) of greater than 9% would be eligible to opt into a community bank leverage ratio framework.

The call begins at 2 p.m. ET; a question-and-answer session will follow presentations. Participants can register here.

FDIC FIL-85-2018

Proposed CBLR framework (Draft Federal Register notice)