The proposal would relax the community bank leverage ratio to 8% from 9% currently, allowing lenders to choose to comply with that standard rather than using risk-based measures.
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US regulators poised to offer capital relief to community banks
“Reducing the CBLR requirement from 9% to 8% could not only allow more community banks to adopt the framework, but also increase balance sheet capacity for all CBLR firms, facilitating additional support for local economies through lending,” Bowman added at the time.
