OCC Makes Technical Correction to Community Bank Leverage Ratio

The OCC corrected a final rule designed to simplify capital requirements for qualifying community banks.

As previously covered, the community bank leverage ratio framework is a "simple alternative methodology to measure capital adequacy" and will provide substantial regulatory relief to smaller banking organizations, consistent with Section 201 of the Economic Growth, Regulatory Relief and Consumer Protection Act. The OCC made technical corrections intended to better align the final rule text with amendments made by other final rules adopted under the act.

The agencies stated that the final rule will become effective on January 1, 2020, and the community bank leverage ratio framework will become available on March 31, 2020. The correction is effective as of January 1, 2020.