Lawmakers back permanent CBLR reduction

Members of the House Financial Services Committee called on federal banking regulators to reduce the Community Bank Leverage Ratio from 9 percent to 8 percent. In a joint letter, the lawmakers said the reduction would exempt an additional 400 community banks from risk-based capital rules such as Basel III.

ICBA has long advocated an 8 percent CBLR, which was authorized under the S. 2155 regulatory relief law. The congressional letter was spearheaded by Rep. Denver Riggleman (R-Va.), who orchestrated a similar joint letter to regulators last September.