Washington, D.C. (Sept. 20, 2021) — The Independent Community Bankers of America (ICBA) today called on federal banking regulators to extend Community Bank Leverage Ratio flexibility given the impact of COVID-19 relief efforts on community bank capital levels.
In a letter to regulators, ICBA asked the banking agencies to extend the 8.5% CBLR requirement through the end of 2022 to accommodate elevated deposit levels caused by emergency stimulus payments and to avoid reducing community bank small business lending.
“ICBA requests that the prudential bank regulators extend the current reduced 8.5% CBLR requirement for one more year or to the end of 2022 to accommodate the expected continued inflow or maintenance of deposits at community banks,” ICBA President and CEO Rebeca Romero Rainey wrote. “Community banks that adopt the CBLR should not be penalized during periods of increased government stimulus payments.”
In the letter, ICBA also urged the agencies to:
- Consider allowing community banks to exclude from the CBLR denominator any cash or cash equivalent overnight investments during periods of unprecedented deposit inflows to support continued operations.
- Provide examiner flexibility in considering the effect of pandemic relief efforts on community bank deposits and regulatory capital levels.
For more information, visit icba.org.
About ICBA
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5.7 trillion in assets, over $4.7 trillion in deposits, and more than $3.6 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org
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