Final Rule on Revisions to the Community Bank Leverage Ratio Framework On April 23, 2026, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation issued a final rule modifying the community bank leverage ratio (CBLR) framework. The rule implements changes directed by section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act to encourage broader adoption among community banks. The final rule applies to qualifying FDIC-supervised financial institutions with less than $10 billion in total consolidated assets that are not advanced approaches banks and have elected to use the CBLR framework. Key changes in the final rule include lowering the CBLR requirement from 9 percent to 8 percent, which allows more community banks to qualify for the framework. The grace period for meeting CBLR requirements has been extended from two quarters to four quarters, providing additional time for banks to either satisfy the definition of a qualifying community banking organization under the CBLR framework or achieve compliance with risk-based capital requirements. The rule limits a community bank’s use of the grace period to a maximum of eight out of the prior twenty quarters. These modifications aim to support community banks by reducing regulatory burden while maintaining strong capital standards. By qualifying for the CBLR framework, eligible banks can allocate additional capacity toward increasing lending in their local communities.
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