The Office of the Comptroller of the Currency (OCC) today issued a revised compliance guide for the community bank leverage ratio (CBLR) framework, a move designed to offer regulatory relief to community banks and potentially unlock an estimated $64 billion for Main Street lending. This updated guide supports the optional CBLR framework, which became effective on July 1, 2026, and is expected to benefit 95 percent of community banks by simplifying capital adequacy measures and reducing regulatory burdens while maintaining safety and soundness.
United States Comptroller of the Currency Jonathan V. Gould emphasized the importance of these institutions. "Community banks are the backbone of the American economy, serving as the conduit to capital for small businesses and hardworking families across the country," Gould said. He added that President Donald J. Trump and Secretary of the Treasury Scott Bessent are "leading a community bank comeback by unleashing Parallel Prosperity for Main Street and Wall Street," with the OCC supporting these efforts by reducing regulations that have "hindered these vital institutions and impeded U.S. economic growth."
The OCC's commitment to addressing challenges for community banks extends beyond this guide. The agency has implemented several other actions, including creating a distinct line of supervision for community banks, tailoring examination activities, increasing the asset range for community bank supervision, and updating model risk management guidance to exclude unnecessary requirements. Further measures include simplifying licensing, establishing tailored Bank Secrecy Act and Anti-Money Laundering examination procedures, reducing complexity for retail nondeposit investment products, eliminating duplicative data collection, and proposing a simplified Community Reinvestment Act strategic plan process. These initiatives aim to enable community banks to grow and continue serving their customers and small businesses effectively.