Independent Community Bankers of America (ICBA) is calling upon federal banking regulators to finalize their rules regarding “Capital Simplification for Qualifying Community Banks.”
Specifically, ICBA is encouraging regulators to establish the Community Bank Leverage Ratio or CBLR at 8 percent rather than at 9 percent as proposed.
“ICBA has long-advocated simplified capital requirements for community banks, whose simplified balance sheets, conservative lending, and common-sense underwriting shield their regulatory capital from the kinds of losses incurred by the largest and riskiest financial institutions,” ICBA President and CEO Rebeca Romero Rainey said. “We appreciate the strong support by House and Senate leaders on this effort to set an 8 percent CBLR, which would benefit more than 500 additional well-capitalized community banks. We urge regulators to use their statutory authority under the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) to provide regulatory relief for the greatest number of community banks in support of economic development for thousands of communities nationwide.”
A coalition of 18 House Financial Services Committee Republicans have called on federal regulators to implement an 8 percent CBLR to ensure the continued flow of credit during any future downturn. Senate Banking Committee Republican, including Chairman Mike Crapo (R-ID) and Jerry Moran (R-KS), are urging the same.
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