Letter outlines proposed changes to call report that implement new community bank leverage ratio

Banks and thrifts began receiving Monday a “financial institution letter” (FIL) outlining proposed changes to call reports which introduce a new community bank leverage ratio (CBLR) schedule, the federal insurer of bank deposit said.

The Federal Deposit Insurance Corp. (FDIC) sent the FIL to draw attention of insured banks and thrifts to the proposed changes. Those changes would allow community banks that qualify for and opt into the CBLR framework to complete Schedule RC-R, CBLR, instead of reporting regulatory capital information on existing Call Report Schedule RC-R, Parts I and II.

FIL 24-2019 notes that comments are due on the changes by June 18.

Last month, the agency (and the other federal banking agencies) published the proposed changes noting that they would align the call report with FDIC’s proposed rule providing a simplified alternative measure of capital adequacy (the CBLR) for certain qualifying community banks with less than $10 billion in total consolidated assets, consistent with Section 201 of last year’s regulatory relief legislation, the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA, S. 2155). The CBLR was also mandated by EGRRCPA.

Last month’s notice also pointed out that the revisions it outlined would take effect in the same quarter as the effective date of final rules on the CBLR. The agencies’ notice additionally noted that the proposed revisions would also implement “reporting changes consistent with the FDIC’s proposed rule to amend the deposit insurance assessment regulations to apply the community bank leverage ratio framework to the deposit insurance assessment system.”

FIL-24-2019: Proposed Revisions to the Consolidated Reports of Condition and Income (Call Report) for the Proposed Community Bank Leverage Ratio