Regulatory Alerts2020-04-23 | 2020-07448Regulatory Capital Rule: Transition for the Community Bank Leverage Ratio Framework
The OCC, Federal Reserve, and FDIC issued an interim final rule establishing a graduated transition for the Community Bank Leverage Ratio framework. The rule phases the leverage requirement from a temporary 8 percent through late 2020 to 8.5 percent in 2021 and permanently to 9 percent thereafter, while preserving a two-quarter grace period for organizations falling within one percentage point of the threshold. Effective April 23, 2020, this framework provides qualifying community banking organizations with sufficient time to meet capital standards and sustain lending amid coronavirus-related economic strains.
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