meta_id 3093203

On April 23, 2026, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve Board jointly finalized a rule modifying the community bank leverage ratio framework. The final rule was adopted without changes from the proposal issued in November 2025. The rule lowers the community bank leverage ratio requirement from nine percent to eight percent, providing community banks with greater flexibility to opt into the simplified capital adequacy framework. Additionally, the grace period for community banks that temporarily fall out of compliance has been extended from two quarters to four quarters. These changes aim to reduce regulatory burden while maintaining safety and soundness standards. The framework allows community banks to use a simpler leverage ratio measure for capital adequacy rather than calculating and reporting risk-based capital ratios. Banks adopting the framework must maintain a leverage ratio significantly higher than the standard leverage ratio otherwise applicable to community banks. The modifications take into account the unique business models and risk profiles of community banks, providing them with regulatory flexibility while preserving prudential safeguards. The final rule takes effect on July 1, 2026. Community banks should review the updated framework to determine whether opting into the simplified leverage ratio approach aligns with their operational and capital management strategies. The rule is available through the OCC's official channels. **References:** Office of the Comptroller of the Currency Newsroom, "Agencies Finalize Changes to Community Bank Leverage Ratio," News Release 2026-30 (April 23, 2026)