Banking Agencies Make Corrections to Community Bank Leverage Ratio Final Rule

The Federal Reserve Board, FDIC and OCC (collectively, the "agencies") made corrections to a final rule designed to simplify capital requirements and provide substantial regulatory relief for qualifying community banks. The final rule went into effect on January 1, 2020.

As previously covered, the community bank leverage ratio framework - which will become available on March 31, 2020 - is a "simple alternative methodology to measure capital adequacy."