ICBA Statement on Community Bank Leverage Ratio Guidance

ICBA continues advocating an extension of CBLR relief

Washington, D.C. (Dec. 22, 2021) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on new interagency guidance that indicates temporary relief from the 9% Community Bank Leverage Ratio will expire on Dec. 31.

“The decision by federal banking regulators to resume a 9% Community Bank Leverage Ratio at the beginning of 2022 penalizes the nation’s community banks for supporting local communities throughout the COVID-19 pandemic. Because deposit levels remain elevated due to emergency stimulus payments, reintroducing the 9% CBLR will harm community bank small-business lending in the middle of a global health crisis.

“The CARES Act lowered the CBLR to 8% in 2020 and 8.5% in 2021. ICBA continues calling on regulators to extend the 8.5% CBLR requirement, permanently raise audit and reporting requirement asset thresholds, and provide additional flexibility given the impact of COVID-19 relief efforts on community bank capital levels. ICBA also continues supporting legislation introduced by Rep. Tracey Mann (R-Kan.) to allow regulators to implement a CBLR of 8-8.5% through 2024.

“Extending this much-needed relief would allow community banks to continue operating without concerns about decreases in their required regulatory capital ratios—to the benefit of the local customers and communities they have served so well during this ongoing pandemic.”

About ICBA
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.

With nearly 50,000 locations nationwide, community banks constitute roughly 99 percent of all banks, employ nearly 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding nearly $5.9 trillion in assets, over $4.9 trillion in deposits, and more than $3.5 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.

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