As required by new law, federal banking agencies have proposed a community bank leverage ratio (CBLR) to replace the current risk-based ratios applicable to banking organizations with assets of less than $10 billion. These banks need not elect the CBLR, but most that are not small BHCs with $3 billion in assets are likely to do so since most now qualify and would receive significant improvements in regulatory capital allocation due to the LR-only standard.
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