Regulatory Alerts2026-04-23
Community Bank Leverage Ratio Final Rule
The OCC, Federal Reserve, and FDIC have issued a final rule amending the Community Bank Leverage Ratio (CBLR) framework for qualifying community banking organizations with under $10 billion in consolidated assets. The rule lowers the baseline leverage ratio requirement from 9 percent to 8 percent and extends the grace period for institutions temporarily failing to meet all qualifying criteria from two consecutive quarters to four, capped at eight quarters over a five-year period. Effective July 1, 2026, these adjustments reduce regulatory reporting burdens and encourage broader framework adoption while maintaining capital levels that support safety and soundness.
Share