Community Bank Leverage Ratio: Updated Community Bank Compliance Guide

INTERNAL FR/OFFICIAL USE // SECURE EXTERNAL
Community Bank Leverage
Ratio Framework
Community Bank Compliance Guide
Revised July 2026

Introduction
This guide is intended to help community banking organizations understand the optional community bank leverage ratio framework adopted by the federal banking agencies.1 The framework provides for a simple measure of capital adequacy for certain community banking organizations, consistent with section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. In 2019, the federal banking agencies issued a final rule establishing the community bank leverage ratio framework, which became effective January 1, 2020.2 On April 29, 2026, the federal banking agencies published a final rule modifying the community bank leverage ratio framework consistent with existing statutory authority.3 The revised community bank leverage ratio framework outlined in this guide took effect on July 1, 2026. Depository institutions and depository institution holding companies that meet qualifying criteria, including having less than $10 billion in total consolidated assets and a tier 1 leverage ratio of greater than 8 percent, are considered qualifying community banking organizations and are eligible to opt into the community bank leverage ratio framework. This guide summarizes the community bank leverage ratio framework and therefore does not carry the effect of law or regulation. In addition to using this guide, community banking organizations should review the community bank leverage ratio framework of the capital rule. 4