OCC – Regulatory Capital Rule: Temporary Changes to and Transition for the Community Bank Leverage Ratio Framework

October 9, 2020 – The OCC, the FRB, and the FDIC are adopting as final the revisions to the community bank leverage ratio framework made under two interim final rules issued in the Federal Register on April 23, 2020.

The final rule adopts these interim final rules with no changes. Under the final rule, the community bank leverage ratio will remain 8 percent through the calendar year 2020, will be 8.5 percent through the calendar year 2021, and will be 9 percent thereafter.

The final rule also maintains a two-quarter grace period for a qualifying community banking organization whose leverage ratio falls no more than 1 percentage point below the applicable community bank leverage ratio requirement.

The final rule is effective on November 9, 2020.

For more information, visit www.federalregister.gov

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