Regulatory Alerts2026-04-23
Agencies finalize changes to enhance community bank leverage ratio
The Board of Governors, FDIC, and OCC finalized a rule modifying the Community Bank Leverage Ratio framework to reduce regulatory burden while maintaining capital standards. The final rule lowers the leverage ratio requirement from 9 percent to 8 percent, making approximately 477 additional community banks eligible for the framework, and extends the compliance grace period from two to four consecutive quarters. Effective July 1, 2026, these changes encourage broader CBLR adoption by providing management buffers and reducing the risk of rapid reversion to risk-based capital requirements.
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