Community Bank LIFT Act

This bill changes the Community Bank Leverage Ratio (CBLR) rules for qualifying community banks. It sets the asset size limit for a “qualifying community bank” at $5 billion and lowers the CBLR range from 8–10% to 6–8%. Regulators must write rules to carry out these changes on a set timeline, and they must study the CBLR to make it easier for more small banks to use, with a focus on simpler compliance for banks with fewer assets.

The bill also requires a review of the CBLR and a report with recommendations, including how to calculate the ratio, how to treat different kinds of assets, who qualifies, how banks can opt in or out, and possible grace periods for switching frameworks.

• Who is affected: Qualifying community banks under the CBLR framework.
• What changes: Asset cap set at $5 billion; CBLR range changed to 6–8%; regulators must consider ways to make the CBLR simpler and more attractive to small banks .
• When: Agencies must issue a CBLR review report within 150 days; propose rules within 180 days; finalize rules within 1 year after the bill becomes law .