Regulatory Capital: Revisions to the Community Bank Leverage Ratio Framework

Key Points

• 1The rule modifies the 'Community Bank Leverage Ratio,' which is the amount of capital (money) that community banks must maintain relative to their total assets
• 2The changes are designed to simplify regulations for smaller banks, potentially allowing them to have more flexibility in lending to local businesses and consumers
• 3Community banks—smaller institutions that serve local areas—are the primary banks affected by this regulation
• 4The public has until January 31, 2026 to submit comments on the proposed changes before the Federal Reserve makes a final decision
• 5These rule changes could influence how much credit is available to small businesses and individuals in communities across the country

Key Dates