The update directly addresses the community bank leverage ratio framework, which limits the ratio between capital and total exposures—a core leverage ratio regulatory requirement.
Mandatory inheritance: Leverage Ratio is a child of Prudential Standards and Governance, so Prudential Standards must be raised as the secondary tag.
Product
This regulatory update concerns capital adequacy frameworks and supervisory relief for community banks, which does not map to any specific retail product type in the taxonomy.
The update addresses regulatory burden reduction and examination procedures for community banks generally, not a specific retail product or service.
Obligation
The update announces regulatory relief measures and supervisory framework changes for community banks, including tailored examination scope and risk-based guidance, which relates to Governance and Oversight of the supervisory relationship and regulatory framework.
The update references tailored risk management guidance and simplified BSA/AML examination procedures, which touch on Controls Implementation and risk-based regulatory design, though the content is primarily policy-level rather than firm-specific obligation.
Activity
The update addresses capital adequacy measurement and regulatory burden reduction for community banks through a simplified leverage ratio framework, which relates most closely to Credit Risk Assessment as it concerns the evaluation of capital adequacy and risk measurement, though the content is primarily prudential/supervisory rather than a specific retail business activity.
The update's mention of tailored BSA/AML examination procedures and simplified CRA strategic planning suggests a secondary connection to Transaction Monitoring or Fraud Prevention, though these elements are supervisory guidance rather than operational business activity requirements; flagged for human review given the low confidence and primarily prudential/regulatory nature of the content.
Themes
The update centers on revised capital adequacy requirements and safety-and-soundness standards for community banks, which is the core Prudential Requirements theme.
The tailored BSA and anti-money laundering examination procedures reflect Financial Crime compliance obligations, though this is secondary to the primary prudential capital focus and warrants human review given the moderate confidence.
Functions
The update directly impacts how community banks calculate and report capital adequacy under the revised CBLR framework, requiring finance and treasury functions to update their regulatory capital accounting treatment and liquidity management processes.
Risk functions must integrate the revised CBLR framework into their enterprise risk appetite and capital management framework, though the primary burden falls on finance and treasury for implementation and reporting.
2026-07-30 18:15:40·pdonofrio@vixio.com
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The Office of the Comptroller of the Currency today issued a revised compliance guide for the community bank leverage ratio (CBLR) framework as part of its ongoing work to provide regulatory relief for community banks.
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TITLE: Office of the Comptroller of the Currency Issues Revised Community Bank Leverage Ratio Framework
BODY:
On July 30, 2026, the Office of the Comptroller of the Currency (OCC) issued a revised compliance guide for the community bank leverage ratio (CBLR) framework, which became effective on July 1, 2026. The updated guide helps community banking organizations understand revisions to the optional CBLR framework, which provides a simplified measure of capital adequacy for certain community banking organizations while reducing regulatory burden and promoting safety and soundness.
The revised framework is designed to free up an estimated $64 billion to support additional lending to Main Street. Approximately 95 percent of community banks are eligible to benefit from the burden-reducing framework. The OCC said the revisions reflect its commitment to addressing challenges facing community banks through a series of regulatory relief measures. These include creating a distinct supervisory line focused on community banks, removing previously required examination activities and tailoring examination scope and frequency based on risk, and increasing the upper asset range of the community bank supervision portfolio to allow organic growth or acquisitions without increased scrutiny. The OCC also updated model risk management guidance to clarify that requirements should be risk-based and tailored to a bank's size and complexity, excluding community banks from unnecessary requirements. Additional actions include simplifying licensing requirements, establishing tailored Bank Secrecy Act (BSA) and anti-money laundering examination procedures reflecting community banks' generally low money laundering and terrorist financing risk levels, and eliminating duplicative data collection requirements. The OCC proposed guidance for a simplified Community Reinvestment Act (CRA) strategic plan process to help community banks focus resources on local credit needs.
The revised CBLR compliance guide is available on the OCC website.
OCC Continues Community Bank Comeback with Revised CBLR Framework | OCC Skip to main content An official website of the United States government Careers Quick Access Most Requested Bank Secrecy Act (BSA) Contact Us Community Reinvestment Act (CRA) Comptroller's Handbook Corporate Applications Search Enforcement Action Search Financial Institution Lists Newsroom Third-Party Relationships: Interagency Guidance on Risk Management More OCC Websites BankNet.gov Find resources for bankers. HelpWithMyBank.gov Get answers to banking questions. Search More Search Tools Financial Institution Search CRA Performance Evaluations Search Enforcement Actions Search Corporate Applications Search (CAS) Home News & Events Newsroom News Release 2026-62 | July 30, 2026 OCC Continues Community Bank Comeback with Revised CBLR Framework Share This Page: $64 billion to be freed up to support Main Street lending 95% of community banks are eligible for CBLR framework WASHINGTON—The Office of the Comptroller of the Currency today issued a revised compliance guide for the community bank leverage ratio (CBLR) framework as part of its ongoing work to provide regulatory relief for community banks. “Community banks are the backbone of the American economy, serving as the conduit to capital for small businesses and hardworking families across the country,” said United States Comptroller of the Currency Jonathan V. Gould. “President Donald J. Trump and Secretary of the Treasury Scott Bessent are leading a community bank comeback by unleashing Parallel Prosperity for Main Street and Wall Street. The OCC is proud to support their efforts by reducing cumbersome regulations that have long hindered these vital institutions and impeded U.S. economic growth.” The updated guide is intended to help community banking organizations understand the revisions to the optional CBLR framework that went into effect July 1, 2026 . The framework provides a simple measure of capital adequacy for certain community banking organizations and reduces regulatory burden while promoting safety and soundness. Overall, 95 percent of community banks could benefit from the burden-reducing framework. The revisions to the CBLR framework will free up an estimated $64 billion that could support additional lending to Main Street. The OCC remains committed to addressing the challenges for community banks and has taken a series of actions to rightsize regulatory burden and tailor supervisory activities so these institutions may grow and continue to meet the needs of the customers and small businesses they serve. These actions include: Creating a distinct line of supervision focused on community banks and the issues that affect them most. Removing previously required OCC examination activities and instead tailored examination scope and frequency in a manner that is consistent with risk-based supervision. Increasing the upper asset range of the community bank supervision portfolio to give them room to grow organically or through acquisition, without facing the increased supervision scrutiny that comes with larger or more complex banks assigned to other supervision portfolios. Updating the OCC’s model risk management guidance to clarify that model risk management should be risk-based, tailored, and commensurate with a bank’s size, complexity, and extent of model use, excluding community banks from unnecessary requirements. Simplifying licensing requirements and alleviating unnecessary compliance burdens by expanding community banks’ access to expedited or reduced filing procedures. Establishing Community Bank Minimum Bank Secrecy Act and Anti-Money Laundering examination procedures to tailor supervisory activities to community banks’ generally low money laundering/terrorist financing risk levels and eliminated Money Laundering Risk System data collection requirements. Reducing complexity by clarifying that the OCC will not use expanded procedures—generally unsuitable to community banks—when examining community banks’ retail nondeposit investment product offerings. Eliminating duplicative data collection requirements , further alleviating regulatory reporting burden for community banks. Proposing guidance for a simplified Community Reinvestment Act strategic plan process to help community banks better focus their resources on local credit needs and clarify measurable goals and other requirements. Related Link CBLR Framework Community Bank Compliance Guide (Revised, July 2026) (PDF) Media Contact Rebecca Karabus (202) 649-6870 Topic(s): Bank Management Capital Community Banks Laws & Regulations OCC Regulations