Fed, FDIC Finalize Changes Easing Community Bank Leverage Ratio

US regulators finalized changes that will relax the community bank leverage ratio, building on previous steps from the Trump administration to ease capital rules for banks.

The standard ratio will drop to 8% from 9% and will “provide more flexibility” for community banks, the Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency said in a statement. The final rule also extends the grace period from two quarters to four quarters for a community bank that temporarily falls out of compliance.

The community bank leverage ratio is an optional framework that was designed ...