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The FDIC requested comment on the application of an interagency proposal to implement the community bank leverage ratio ("CBLR") framework. The FDIC plans to amend its deposit insurance assessment regulations to apply the CBLR framework to the deposit insurance assessment system.
Through changes to the assessment regulations and corresponding modifications to the Consolidated Reports of Condition and Income ("Call Report"), CBLR banks would have the option of using either:
- CBLR "tangible equity" or "tier 1 capital" for their assessment base calculation; and
- CBLR or the "tier 1 leverage ratio for the Leverage Ratio" that the FDIC utilizes to calculate an "established small bank's assessment rate."
The FDIC also proposes to clarify that (i) a CBLR bank, which satisfies the definition of a "custodial bank," would have no changes to its custodian bank deduction or reporting items required to calculate the deduction, and (ii) the assessment regulations would continue to reference the "prompt corrective action" ("PCA") regulations for the definitions of capital categories used in the deposit insurance assessment system.
Comments must be submitted by April 22, 2019.
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