Regulatory Capital: Revisions to the Community Bank Leverage Ratio Framework

Key Points

• 1The FDIC wants to revise the 'Community Bank Leverage Ratio' framework, which is a tool used to measure whether smaller banks have enough money set aside as a safety cushion
• 2The proposed changes would simplify calculations for community banks, reducing complexity and potentially lowering costs for these smaller financial institutions
• 3Community banks are smaller, locally-focused banks that serve individual customers and small businesses, so changes affect their lending availability to communities
• 4The public can submit comments on this proposal until January 31, 2026 before the FDIC makes a final decision
• 5The changes aim to balance making banking easier for smaller banks while still protecting customers' deposits and maintaining financial system stability

Key Dates