Modifications to the Community Bank Leverage Ratio Requirements from Passing of Act 2155
Modifications to the Community Bank Leverage Ratio Requirements from Passing of Act 2155
Act 2155 – Economic Growth, Regulatory Relief and Consumer Protection Act passed on May 22, 2018 provided modification to the current Community Bank Leverage Ratio (CBLR). Below is a summary of the original ratio requirements and the modifications in effect since the passing of Act 2155:
- Prior to Act 2155 – all banks were subject to leverage and risk-based capital requirements
- After Act 2155 was passed – banks with less than $10 billion in assets are exempt from leverage and risk-based capital requirements
- The leverage ratio must be between 8% and 10% capital to unweighted assets
Although a bank has less than $10 billion in assets, Banking Regulators may determine a certain bank is not eligible based on the bank’s risk profile.
For additional information contact nreifsnider@fosaudit.com.
Modifications to the Community Bank Leverage Ratio Requirements from Passing of Act 2155 | Natalie Reifsneider