Community Bank Leverage Ratio

Updated: Additional Data Shows Most Banks Saying No to CBLR

As we told you last month, two out of every three community banks chose not to opt into the Community Bank Leverage Ratio. We've updated our numbers as more banks file their Call Reports, but the trend continues. The latest numbers show just 1,709 banks ...
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News Alert: Two out of Three Banks Say No to the Community Bank Leverage Ratio

Thanks, but no thanks: That’s the resounding message from community banks about the new community bank leverage ratio framework. Two out of every three banks chose not to opt into the new framework, according to an exclusive Invictus Group analysis of 4,672 first quarter 2020 ...
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The Hidden “Surcharge” Embedded in the CBLR

By Adam Mustafa, Invictus Group CEO The Federal Reserve approved a simplification of the capital rules for the large banks on March 4, which coincided with the beginnings of the collapse in financial markets due to COVID-19. So, what does this have to do with ...
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Should Community Banks Consider the CBLR at 8 Percent?

By Adam Mustafa, Invictus Group CEO Under the CARES Act signed into law by President Trump last month, the Community Bank Leverage Ratio CBLR) threshold temporarily drops from 9 percent to 8 percent until the earlier of December 31, 2020 or the date on which ...
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Coronavirus Relief Bill Lowers Community Bank Leverage Ratio, Delays CECL for All Banks

The final version of the $2.2 trillion coronavirus relief bill passed by the U.S. Senate would make life easier for community banks this year. The bill temporarily lowers the community bank leverage ratio to 8 percent and postpones the new accounting standards known as CECL ...
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How Does COVID-19 Affect the Looming Community Bank Leverage Ratio Decision?

By Adam Mustafa, Invictus Group CEO The decision on whether to opt into the new Community Bank Leverage Ratio (CBLR) feels trivial right now. The immediate focus of every community bank in the country needs to be on the safety and economic well-being of their ...
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Special Report January 2020

A handbook compiling essential information and guidance about the community bank leverage ratio ...
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The Hidden Cost of Ignoring the CBLR

Many community bankers do not realize their own existing capital plans may be more stringent than the community bank leverage ratio (CBLR). We all know bankers like math. So read on to find out how I can prove that simply ignoring the CBLR—without proactive stress ...
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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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