Community Bank Leverage Ratio

The Community Bank Leverage Ratio: What if My Bank Does Nothing?

Many community banks have decided that the best course of action regarding the new community bank leverage ratio (CBLR) is the easiest: Do nothing. Keep the status quo.  After all, regulators have seen their capital plans and haven’t complained, so why change? But business as ...
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The Business Case for a Careful Consideration of the Community Bank Leverage Ratio

We have been preaching for two months that community banks must take seriously the decision whether to opt into the Community Bank Leverage Ratio (“CBLR”).  Our analysis suggests that it would be damaging to the vast majority of community banks to opt into the new ...
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Boards Take Note: The CBLR Mandates a Thorough Exploration of Capital Impact

As third-quarter 10-Qs roll into the Securities and Exchange Commission, one thing stands out:  Most public banks are contemplating whether it makes sense to opt into the new community bank leverage ratio framework. The new rule, which requires banks with less than $10 billion to ...
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Simpler is Not Always Better: The Community Bank Leverage Ratio Playbook

How to Calculate and Defend Your Own Capital Requirement Using Stress Testing Background The Federal Deposit Insurance Corporation on Sept. 17 finalized the Community Bank Leverage Ratio (“CBLR”). Community banks with less than $10 billion in assets can opt into the new capital framework and forego ...
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Stress Capital Before Opting into the New Community Bank Leverage Framework

Note to community bank execs: The clock is ticking on how you calculate your capital requirements. The FDIC this week finalized the new 9 percent community bank leverage ratio, and it goes into effect in January for most banks with total assets of less than ...
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Capital Planning — Why Opting into the Community Bank Leverage Ratio Shouldn’t be Automatic

CAPITAL PLANNING Why Opting into the Community Bank Leverage Ratio Shouldn’t be Automatic By Lisa Getter, Bank Insights Editor Every community bank should assess its own situation and business model before deciding to opt in to the proposed new community bank leverage ratio (CBLR) framework, regulators ...
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Regulations – Disruptive Thinking: Is the Community Bank Leverage Ratio Fool’s Gold?

REGULATIONS Disruptive Thinking: Is the Community Bank Leverage Ratio Fool’s Gold? By Adam Mustafa, Invictus Group President and CEO The financial regulatory reform bill that recently passed in the Senate contains a number of so-called goodies for community banks. But one of those provisions is actually ...
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