pc
nid 94325
Jul 30, 2026
pdonofrio@vixio.com
US Track 2
News Releases - Office of the Comptroller of the Currency (OCC)
financial services
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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.
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2165 charsUS Office of the Comptroller of the Currency Updates Guidance on Community Bank Leverage Ratio Framework
On July 30, 2026, the US Office of the Comptroller of the Currency (OCC) issued a revised compliance guide for the new community bank leverage ratio (CBLR) framework , which took effect on July 1, 2026.
According to an OCC news release , the updated guidance is intended to help community banks understand the recent revisions to the optional CBLR framework, which provides a simplified measure of capital adequacy for certain community banks, while also reducing regulatory burden and promoting safety and soundness. The revised framework is designed to provide an estimated $64bn to support additional lending by community banks, with approximately 95 percent of community banks eligible to benefit from it.
The guidance summarizes key revisions to the CBLR framework, including but not limited to:
Lowering the minimum leverage ratio requirement from greater than 9 percent to greater than 8 percent.
Revising the grace period for a community bank that elects to use the CBLR framework but temporarily fails to meet all of the qualifying criteria, including the leverage ratio requirement, to provide that: The community bank will have four quarters to return to compliance, provided the community bank maintains a leverage ratio greater than 7 percent and does not exceed a limit of eight quarters in the grace period over a five-year period. A community bank that has a leverage ratio equal to or less than the grace period minimum of 7 percent will be required to comply with the applicable risk-based capital standards.
The community bank will have four quarters to return to compliance, provided the community bank maintains a leverage ratio greater than 7 percent and does not exceed a limit of eight quarters in the grace period over a five-year period.
A community bank that has a leverage ratio equal to or less than the grace period minimum of 7 percent will be required to comply with the applicable risk-based capital standards.
The OCC noted that the compliance guide does not carry the effect of law or regulation and that, in addition to referencing it, community banks should review the full text of the CBLR framework in the capital rule.