Federal Register #2026-08298

Regulatory Adjustment to Community Bank Leverage Ratio Framework

This regulatory update from the Office of the Comptroller of the Currency, Federal Reserve System, and Federal Deposit Insurance Corporation adjusts requirements for community banks: - The Community Bank Leverage Ratio (CBLR) requirement is reduced from 9% to 8% - The period for which qualifying institutions can remain in the CBLR framework without meeting all criteria is extended from two to four consecutive quarters - There is a maximum of eight quarters in the previous five-year period for this exception - No products, services, OEMs, or vendors are involved, as this is a regulatory change - The rule is designed to provide relief to community banking organizations while maintaining safety and soundness - Agencies involved: Office of the Comptroller of the Currency, Federal Reserve System, Federal Deposit Insurance Corporation, and the Treasury Department - No unique procurement requirements or contract actions are present

Description

This final rule, effective July 1, 2026, lowers the community bank leverage ratio (CBLR) requirement from 9% to 8%, consistent with the Economic Growth, Regulatory Relief, and Consumer Protection Act. It also extends the period certain depository institutions and holding companies can remain in the CBLR framework while not meeting all qualifying criteria from two consecutive quarters to four consecutive quarters, with a limit of eight quarters in the previous five-year period. The rule aims to provide regulatory burden relief to community banking organizations while maintaining safety and soundness objectives. The agencies involved are the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation.

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