Bill > HR5276

This bill, known as the Community Bank LIFT Act, aims to modify the Community Bank Leverage Ratio (CBLR) framework to provide more flexibility and support for smaller banks. Specifically, the bill raises the asset threshold for qualifying community banks from $10 million to $15 million and adjusts the leverage ratio requirement from a range of 8-10% to 6-8%. The legislation requires federal banking regulators (the Federal Reserve, Comptroller of the Currency, and FDIC) to conduct a comprehensive review of the CBLR within 150 days, focusing on ways to encourage more community banks to participate in the framework. The review will examine potential modifications to the CBLR calculation, asset treatment, bank qualification criteria, and opt-in procedures, with the goal of reducing regulatory compliance burdens for smaller banks. The regulators must propose new rules within 180 days and finalize them within one year of the bill's enactment, based on their findings and recommendations. This approach is intended to provide more tailored and less complicated financial regulations for smaller community banks, potentially making it easier for them to meet capital requirements and remain competitive.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/5276/all-info