Summary:
The Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency (collectively, the agencies) are adopting the final revisions to the community bank leverage ratio framework (CBLR) made under two interim final rules issued in the Federal Register on April 23, 2020. The final rule adopts these interim final rules with no changes, effective October 1, 2020.
A copy of the Temporary Changes to the Community Bank Leverage Ratio Framework can be found on the FDIC’s website.
Statement of Applicability: The final rule is applicable to all non-advanced approaches, FDIC-supervised institutions with less than $10 billion in total consolidated assets.
Highlights:
- The agencies are adopting, as final, the revisions to the CBLR made under two interim final rules issued in the Federal Register on April 23, 2020. The final rule adopts these interim final rules with no changes.
- Under the final rule, the CBLR will remain 8 percent through calendar year 2020, will be 8.5 percent through calendar year 2021, and will be 9 percent thereafter.
- The final rule also maintains a two-quarter grace period for a qualifying community banking organization whose leverage ratio falls no more than 1 percentage point below the applicable CBLR requirement.
- The final rule is effective October 1, 2020. The 8 percent CBLR remains available under the interim final rule effective as of June 30, 2020.
Distribution:
FDIC-Supervised Institutions
Suggested Routing:
Chief Executive Officer
Chief Financial Officer
Chief Risk Officer
Additional Related Topics:
- Risk-Based Capital Rules, 12 CFR Part 324