Regulatory Alerts2026-07-30
Added
Community Bank Leverage Ratio: Updated Community Bank Compliance Guide
The federal banking agencies updated the community bank leverage ratio framework, which became effective July 1, 2026, to provide a simplified capital 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 these standards.
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