Regulatory Capital Rule: Revisions to the Community Bank Leverage Ratio Framework

The Providing Accountability Through Transparency Act of 2023 requires that a notice of proposed rulemaking include the internet address of a summary of not more than 100 words in length of a proposed rule, in plain language, that shall be posted on the internet website www.regulations.gov. The Office of the Comptroller of the Currency is proposing to lower the community bank leverage ratio requirement from 9 percent to 8 percent. The proposal would also extend the length of the “grace period” afforded to qualifying community banking organizations that fall out of compliance with the community bank leverage ratio from two quarters to four quarters, with a reservation of authority to provide further extensions if deemed appropriate. The proposal and the required summary can be found at https://www.regulations.gov by searching for Docket ID OCC-2025-0141, https://occ.gov/topics/laws-and-regulations/occ-regulations/proposed-issuances/index-proposed-issuances.html.