Regulatory Alerts2026-04-29 | 2026-08298Regulatory Capital Rule: Community Bank Leverage Ratio Framework
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation are adopting a final rule that lowers the community bank leverage ratio requirement from 9 percent to 8 percent. The rule also extends the grace period for qualifying community banking organizations to return to compliance from two consecutive quarters to four consecutive quarters, subject to a limit of eight quarters in the previous five-year period. This final rule, effective July 1, 2026, implements statutory requirements under the Economic Growth, Regulatory Relief, and Consumer Protection Act to provide meaningful regulatory burden relief while maintaining safety and soundness.
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