ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Community Banking

McWilliams: Most Community Banks Will See Relief Under Leverage Ratio Proposal

November 16, 2018
Reading Time: 1 min read

An estimated 80 percent of community banks will be exempt from complex risk-based capital under the yet-to-be-announced community bank leverage ratio, FDIC Chairman Jelena McWilliams said at a community banking symposium hosted by the Federal Reserve Bank of Chicago today. Her remarks came in advance of the FDIC board vote on the proposal, which is scheduled for Tuesday.

Under the proposal — which is a mandatory rulemaking in the S. 2155 regulatory reform bill and which originated in a recommendation several years ago from ABA and the state bankers associations — qualifying banks with less than $10 billion that meet “a simple ratio of tangible equity to total assets” will be exempt from the existing Basel III framework, McWilliams said. She added that under the proposal, banks will need to satisfy certain activity-related criteria, and that “a simple leverage ratio makes sense for traditional business models.”

While the majority of community banks will be able to take advantage of the exemption, McWilliams said that regulators will also continue working to simplify the existing capital framework for community banks that choose not to adopt the leverage ratio or do not qualify for it. This would include finalizing a capital simplification issued last year that would make changes to the capital treatment for mortgage servicing assets, certain deferred tax assets, and investments in unconsolidated financial institutions, she said.

“Let me emphasize that the purpose of this exercise is not to reduce the loss-absorbing capacity at banks,” McWilliams said. “The purpose is to simplify how capital ratios are calculated and reduce the compliance burden imposed on small banks that, by and large, already have more than enough capital to meet regulatory minimums.”

ADVERTISEMENT
Tags: Basel IIIRegulatory capital
ShareTweetPin

Author

Monica C. Meinert

Monica C. Meinert

Monica C. Meinert is a senior editor at the ABA Banking Journal and VP for executive communications at the American Bankers Association.

Related Posts

Consumer Sentiment declined in April

Consumer sentiment holds steady in May

Economy
May 30, 2025

The University of Michigan Consumer Sentiment Index neither rose nor fell in May compared to the month prior, holding at 52.2, according to final results for the month.

Personal income increased in February

Personal income increased 0.8% in April

Economy
May 30, 2025

Personal income increased 0.8%, or $210.1 billion, in April, the Commerce Department said. The personal savings rate was 4.9%.

CFPB study: BNPL loans grew tenfold since 2019

ABA DataBank: Increase in late payments by buy now, pay later users

Economy
May 30, 2025

Close to one-fourth of buy now, pay later users were late making a payment in 2024, a significant increase from the previous year.

ABA faults banking regulators for confusing CRA rule rollout

FDIC releases CRA exam schedules for Q3, Q4

Compliance and Risk
May 30, 2025

The FDIC has issued the lists of institutions scheduled for Community Reinvestment Act examinations during the third and fourth quarters of 2025.

HUD to reinstate 2013 disparate impact rule

ABA urges HUD to rescind disparate-impact rule

Compliance and Risk
May 30, 2025

ABA urged HUD to rescind its 2023 disparate-impact rule and replace it with one that more closely aligns with the findings of the U.S. Supreme Court.

Executive order phases out U.S. Treasury paper checks

Public comment sought on plan to phase out U.S. Treasury paper checks

Newsbytes
May 30, 2025

The Treasury Department is taking public comment on plans to implement President Trump’s executive order directing it to no longer issue paper checks for disbursements.

NEWSBYTES

Consumer sentiment holds steady in May

May 30, 2025

Personal income increased 0.8% in April

May 30, 2025

ABA DataBank: Increase in late payments by buy now, pay later users

May 30, 2025

SPONSORED CONTENT

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025
AI for Banks: A Starter Guide for Community and Regional Institutions

AI for Banks: A Starter Guide for Community and Regional Institutions

March 1, 2025

PODCASTS

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025

How a Georgia community bank supports government-guaranteed lending nationwide

May 1, 2025

Podcast: Quantum computing’s shakeup in payments, cybersecurity

April 24, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.