This story appeared in Bank Digest.
The Federal Deposit Insurance Corporation's Board of Directors has voted to propose a simpler method that qualifying community banks can use to measure their capital adequacy. The community bank leverage ratio framework will allow qualifying banks to satisfy generally applicable capital requirements, prompt corrective action well-capitalized ratio requirements, and all other applicable capital and leverage requirements with a single measurement.
The proposed regulation amendments are required by the Economic Growth, Regulatory Relief, and Consumer Protection Act, and the Federal Reserve Board and Office of the Comptroller of the Currency are also expected to approve the notice of proposed rulemaking. Comments on the proposal must be received within 60 days of its publication in the Federal Register.