US agencies lower community bank leverage ratio to 8%
Community banks must use an 8% leverage threshold for CBLR eligibility
Change
The OCC, Federal Reserve Board and FDIC adopted a final rule lowering the Community Bank Leverage Ratio requirement from 9% to 8%, effective July 1, 2026.
Why it matters
The rule changes the capital threshold for community banks using the simplified CBLR framework. Capital, finance and regulatory-reporting teams must apply the 8% leverage ratio threshold when determining CBLR eligibility from the effective date.
Implications
- — Community-bank capital teams must calculate CBLR eligibility using the 8% leverage ratio threshold from July 1, 2026.
- — Community-bank regulatory-reporting teams must update CBLR threshold references in reporting controls and internal policy documents before the final rule takes effect.
- — Community banks near the prior 9% threshold must reassess whether they qualify for the CBLR framework under the lower 8% requirement.
Who is affected
- — Community-bank capital teams
- — Community-bank regulatory-reporting teams
- — Community banks using or assessing the CBLR framework
What to watch
- — Bulletin publication date: April 23, 2026
- — Effective date: July 1, 2026
- — CBLR requirement lowered from 9% to 8%