The federal banking agencies are seeking comment on an interagency rulemaking to expand the eligibility criteria for the community bank leverage ratio while also extending the grace period for banks that elect to use it.

The community bank leverage ratio, adopted in 2019, simplifies regulatory capital requirements for community banks by allowing the adoption of simple leverage ratio to measure capital adequacy. The proposal would lower the community bank leverage ratio requirement to eight percent from the current nine percent. The proposal would also extend the grace period, from two quarters to four quarters, for a community bank that opts into the framework and falls out of compliance to come back into compliance.

Comments must be received by January 30, 2026.

Author: sdbrownlow

Student of Design