Regulatory Alerts2026-07-30 | FIL-43-2026Added · Updated
Community Bank Leverage Ratio Framework: Community Bank Compliance Guide Update
The federal banking agencies updated the Community Bank Leverage Ratio Framework, which became effective July 1, 2026, to provide a simplified capital adequacy measure for qualifying community banking organizations. Eligible institutions, defined as those with less than $10 billion in total consolidated assets and a tier 1 leverage ratio greater than 8 percent, may opt into this framework to avoid calculating and reporting risk-based capital ratios. The guide details specific qualifying criteria, including limits on off-balance sheet exposures and trading assets, and outlines a four-quarter grace period for organizations that temporarily fail to meet requirements while maintaining a leverage ratio above 7 percent.
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