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For Immediate Release
November 20, 2018
ABA Media Contact: Ian McKendry
(202) 663-5473
Email: 
imckendry@aba.com
Follow us on Twitter: @ABABankers

ABA Statement on Proposed Community Bank Leverage Ratio

By Rob Nichols, ABA president and CEO

​“Today’s proposal marks an important step forward in implementing the bipartisan regulatory reform law that passed earlier this year, but we believe there is room for regulators to go further. Strong capital requirements don’t need to be complex to calculate, which is why Congress wanted healthy community banks to spend less time filling out paperwork documenting their capital positions and more time serving local communities and small businesses. If designed as Congress intended, the community bank leverage ratio will be an optional and viable alternative to risk-based capital rules that have long been a poor fit for community banks.
 
“Unfortunately, the 9 percent leverage ratio proposed by regulators will still leave too many well-capitalized community banks forced to follow capital rules always intended for more complex institutions. We appreciate regulators putting the proposal forward, and we look forward to working with them to improve it.”
 
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The American Bankers Association is the voice of the nation's $17 trillion banking industry, which is composed of small, midsize, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend nearly $10 trillion in loans.