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McWilliams: 80% To Gain Capital Relief

McWilliams: 80% to Gain Capital Relief

Nov. 19, 2018

FDIC Chairman Jelena McWilliams said the FDIC estimates that more than 80 percent of community banks will be eligible for an exemption from risk-based capital requirements set to be proposed tomorrow.

The S. 2155 regulatory relief law signed this year requires the banking agencies to develop a community bank leverage ratio of between 8 and 10 percent. Banks with less than $10 billion in assets that meet the leverage ratio will be considered well capitalized and exempt from all risk-based capital requirements, including the Basel III capital rules.

ICBA, which has long advocated a community bank exemption from Basel III, supports an 8 percent threshold to maximize the benefit for community banks. ICBA will closely monitor the proposed rule and continue working with regulators on the issue.

Read McWilliams’ Speech

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