Regulatory Alerts2020-10-09 | 2020-19922Regulatory Capital Rule: Temporary Changes to and Transition for the Community Bank Leverage Ratio Framework
The Office of the Comptroller of the Currency, Federal Reserve Board, and FDIC have finalized interim rules establishing a graduated transition for the Community Bank Leverage Ratio framework. The rule sets the leverage ratio requirement at 8 percent through 2020, 8.5 percent through 2021, and 9 percent thereafter for qualifying community banking organizations with under $10 billion in assets. It also preserves a two-quarter grace period, allowing these organizations to remain well capitalized if their leverage ratio falls no more than one percentage point below the applicable threshold.
Share