Federal regulators formally finalized their rule
implementing the Community Bank Leverage Ratio and issued a community bank compliance guide.
The final rule holds the CBLR at 9 percent, despite ICBA-led efforts to lower the threshold to 8 percent and expand capital relief to more community banks.
Banks with less than $10 billion in assets that have a tier 1 leverage ratio above 9 percent can opt to be considered well-capitalized and exempt from risk-based capital requirements, including the Basel III capital rules.
Regulators said approximately 85 percent of community banks will qualify for the CBLR framework, which will be available to use in their March 31, 2020, call report.