TITLE: Federal Deposit Insurance Corporation Revises Community Bank Leverage Ratio Framework Requirements
BODY:
On April 23, 2026, the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System (Federal Reserve), and Federal Deposit Insurance Corporation (FDIC) issued a final rule modifying the community bank leverage ratio (CBLR) framework. The revision implements section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act to expand CBLR adoption among community banks.
The final rule introduces three key modifications to the CBLR framework. First, it lowers the CBLR requirement from 9 percent to 8 percent, enabling more community banks to qualify for the framework. Second, it extends the grace period for compliance from two quarters to four quarters, providing additional time for community banks to either satisfy the definition of a qualifying community banking organization or achieve compliance with risk-based capital requirements. Third, it limits community banks to using the grace period for a maximum of eight out of the prior twenty quarters.
The rule applies to qualifying FDIC-supervised financial institutions with less than $10 billion in total consolidated assets that are not advanced approaches banks and elect the CBLR framework. The agencies intend these revisions to encourage broader CBLR adoption while maintaining strong capital standards and enabling participating banks to increase lending capacity within their communities.
For further information or inquiries regarding the final rule, contact the FDIC at regulatorycapital@fdic.gov.
**Reference:** Federal Deposit Insurance Corporation, "Final Rule on Revisions to the Community Bank Leverage Ratio (CBLR) Framework," April 23, 2026, available at https://www.fdic.gov/