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.