Sec. 201. Capital simplification for qualifying community banks
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/bill/115/s/2155/enr/section-201·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In this section: The term Community Bank Leverage Ratio means the ratio of the tangible equity capital of a qualifying community bank, as reported on the qualifying community bank’s applicable regulatory filing with the qualifying community bank’s appropriate Federal banking agency, to the average total consolidated assets of the qualifying community bank, as reported on the qualifying community bank’s applicable regulatory filing with the qualifying community bank’s appropriate Federal banking agency.
The terms generally applicable leverage capital requirements and generally applicable risk-based capital requirements have the meanings given those terms in section 171(a) of the Financial Stability Act of 2010 ( 12 U.S.C. 5371(a) ). The term qualifying community bank means a depository institution or depository institution holding company with total consolidated assets of less than $10,000,000,000. The appropriate Federal banking agencies may determine that a depository institution or depository institution holding company (or a class of depository institutions or depository institution holding companies) described in subparagraph
(A)is not a qualifying community bank based on the depository institution’s or depository institution holding company’s risk profile, which shall be based on consideration of— off-balance sheet exposures; trading assets and liabilities; total notional derivatives exposures; and such other factors as the appropriate Federal banking agencies determine appropriate. The appropriate Federal banking agencies shall, through notice and comment rule making under section 553 of title 5, United States Code— develop a Community Bank Leverage Ratio of not less than 8 percent and not more than 10 percent for qualifying community banks; and establish procedures for treatment of a qualifying community bank that has a Community Bank Leverage Ratio that falls below the percentage developed under paragraph
(1)after exceeding the percentage developed under paragraph (1). Any qualifying community bank that exceeds the Community Bank Leverage Ratio developed under subsection (b)(1) shall be considered to have met— the generally applicable leverage capital requirements and the generally applicable risk-based capital requirements; in the case of a qualifying community bank that is a depository institution, the capital ratio requirements that are required in order to be considered well capitalized under section 38 of the Federal Deposit Insurance Act ( 12 U.S.C. 1831o ) and any regulation implementing that section; and any other capital or leverage requirements to which the qualifying community bank is subject. Nothing in paragraph
(1)shall limit the authority of the appropriate Federal banking agencies as in effect on the date of enactment of this Act. The appropriate Federal banking agencies shall— consult with the applicable State bank supervisors in carrying out this section; and notify the applicable State bank supervisor of any qualifying community bank that it supervises that exceeds, or does not exceed after previously exceeding, the Community Bank Leverage ratio developed under subsection (b)(1).
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