Easing Rules for Community Banks: Lower Capital Requirements and Less Red Tape.
This law aims to reduce regulatory burdens for smaller, local banks by raising the asset limit for simplified supervision from $10 billion to $15 billion. It also lowers the minimum required capital ratio (leverage ratio) for these banks. This grants community banks greater financial flexibility, potentially leading to easier access to loans and improved services for local communities.
Key points
More local banks (up to $15 billion in assets) can use simplified financial supervision rules.
The minimum required capital for these banks is lowered (from 8-10% to 6-8%), giving them more lending freedom.
Financial authorities must review and simplify the rules further to reduce bureaucracy for the smallest community banks.
Placed on Calendar
Citizen Poll