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Community Bank Leverage Ratio (CBLR)

A simplified way for smaller banks to calculate how much financial cushion they need to hold. Instead of complex risk calculations, it's a straightforward ratio of a bank's core capital to its total assets.

Qualifying community bank

A bank that meets certain criteria, primarily based on its total assets, which allows it to opt into the simplified Community Bank Leverage Ratio framework for capital requirements.

Leverage ratio

A measure of a bank's financial strength, calculated as its core capital (like owner's equity) divided by its total assets. A higher ratio means more capital on hand, offering a greater cushion against losses.

Federal Reserve System

The central bank of the United States, responsible for conducting monetary policy, supervising and regulating banking institutions, and maintaining financial stability.

Comptroller of the Currency (OCC)

An independent bureau within the U.S. Department of the Treasury that charters, regulates, and supervises all national banks and federal savings associations.

Federal Deposit Insurance Corporation (FDIC)

An independent agency of the U.S. government that protects bank depositors by insuring deposits and supervises financial institutions for safety and soundness.