On November 25, the Fed, OCC and FDIC issued a joint NPRM in the Federal Register to revise the community bank leverage ratio (CBLR) framework. The proposal would lower the CBLR requirement from 9 percent to 8 percent and extend the grace period for banks that fall out of compliance from two quarters to four quarters. According to the agencies, the proposed changes are intended to reduce regulatory burden and provide greater flexibility for community banks, while maintaining strong capital standards that reflect the unique business models and risk profiles of community banks and remain comparable to, or higher than, those required under the risk-based capital framework. The leverage ratio under the proposal would remain double the minimum leverage ratio applicable to community banks not using the CBLR framework.

Comments on the proposal must be submitted by January 30, 2026.