The Federal Register has outlined a proposal that would extend the period for banks to remain in the Community Bank Leverage Ratio (CBLR) framework without meeting all qualifying criteria from two to four quarters. The deadline for comments on the proposed rule is Jan. 30, 2026. Read more
The Mortgage Bankers Association (MBA) has expressed support for the CBLR, stating that it offers regulatory relief by eliminating the need to calculate and report risk-based capital ratios. In a recent comment letter, MBA proposed lowering the ratio to 8% and allowing banks a longer grace period to regain compliance or exit the framework.
Introduced in 2019, the CBLR provides an option for banks to avoid the complexity of risk-based capital ratios. The Federal Register announcement from the agencies highlights that the proposed adjustments aim to give community banks more flexibility in managing regulatory obligations while continuing to serve their communities.