Senate Banking Committee Republicans led by Sen. Mike Crapo (R-Idaho) called on federal regulators to use their authority to extend the 8 percent Community Bank Leverage Ratio through Dec. 31.
Background: As required by the CARES Act, the agencies lowered the CBLR to 8 percent for 2020, exempting more community banks from risk-based capital requirements. Under an interim final rule, the CBLR will transition to 8.5 percent in 2021 and to 9 percent in 2022.
Joint Letter: As ICBA has told Congress and the agencies, the senators said community bank Paycheck Protection Program lending and Economic Impact Payment deposits have dramatically affected their capital levels and leverage ratios, justifying an extension of CBLR relief.