Regulatory Capital Rule: Temporary Changes to the Community Bank Leverage Ratio Framework

Temporary changes to the community bank leverage ratio framework
Subject: CBLR framework
Agency: FDIC, Federal Reserve, OCC
Status: Interim final rule; request for comments

This interim final rule makes temporary changes to the community bank leverage ratio framework, pursuant to section 4012 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, statutory interim final rule). As of the second quarter 2020, a banking organization with a leverage ratio of 8 percent or greater (and that meets other qualifying criteria) may elect to use the community bank leverage ratio framework. The statutory interim final rule also establishes a two-quarter grace period for a qualifying community banking organization whose leverage ratio falls below the 8-percent community bank leverage ratio requirement, so long as the banking organization maintains a leverage ratio of 7 percent or greater. The temporary changes to the community bank leverage ratio framework implemented by this statutory interim final rule will cease to be effective as of the earlier of the termination date of the national emergency concerning the coronavirus disease declared by the President on March 13, 2020, under the National Emergencies Act, or December 31, 2020. To provide clarity to banking organizations, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation issued concurrently an interim final rule that provides a transition from the temporary 8-percent community bank leverage ratio requirement to a 9-percent community bank leverage ratio requirement.

FR Doc: 2020-07449
Date proposed:
Comments due date: June 8, 2020
Final rule effective date:

April 23, 2020

Rule compliance date:
Agency release:

Related Reg Report item(s):

45-day comment period to open on temporary rule lowering CBLR

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