Regulatory Alerts2026-04-29 | 2026-08298Regulatory Capital Rule: Community Bank Leverage Ratio Framework
The OCC, Federal Reserve Board, and FDIC have issued a final rule amending the Community Bank Leverage Ratio framework to lower the capital requirement from 9 percent to 8 percent. The rule extends the grace period for qualifying community banking organizations with under $10 billion in assets, permitting them to remain in the framework without meeting all criteria for up to four consecutive quarters instead of two. Effective July 1, 2026, these adjustments reduce regulatory burden and encourage broader adoption while maintaining the safety and soundness of participating institutions.
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