Regulatory Alerts2020-04-23 | 2020-07449Regulatory Capital Rule: Temporary Changes to the Community Bank Leverage Ratio Framework
The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the FDIC jointly issued an interim final rule that temporarily lowers the community bank leverage ratio threshold from 9 percent to 8 percent and establishes a two-quarter grace period for institutions maintaining ratios between 7 and 8 percent. Effective April 23, 2020, qualifying community banking organizations may elect this simplified framework to satisfy capital and leverage requirements without filing complex risk-based reports. The temporary adjustments remain in force until the earlier of the declared national emergency's termination or December 31, 2020.
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