US federal agencies announce changes to the Community Bank Leverage Ratio

United States - Image by 15299 from Pixabay

The federal bank regulators have announced the issuance of two interim final rules to provide temporary relief to community banking organizations. 

The rules will modify the community bank leverage ratio framework so that:

i) beginning in Q2 2020 and until the end of the year, a banking organization that has a leverage ratio of 8 percent or greater and meets certain other criteria may elect to use the community bank leverage ratio framework; and

ii) community banking organizations will have until January 1, 2022, before the community bank leverage ratio requirement is re-established at greater than 9 percent.

The changes will be effective as of the publication of the rules in the Federal Register.  The federal regulators will accept comments on the interim final rules for 45 days after publication.

Photo Credit: Pixabay

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