Community Bank Relief Act of 2021

Community Bank Relief Act of 2021

This bill requires banking agencies to set the community bank leverage ratio between 8% and 8.5% for calendar years 2022, 2023, and 2024 for community banks seeking to satisfy simplified capital adequacy requirements. Currently, banking agencies are statutorily required to set the rate between 8% and 10% through rulemaking. Under current regulations, the rate will increase from 8.5% to 9% on January 1, 2022.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6145 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 6145

   To require the appropriate Federal banking agencies to develop a 
Community Bank Leverage Ratio that is between 8 percent and 8.5 percent 
    for calendar years 2022, 2023, and 2024, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 7, 2021

   Mr. Mann introduced the following bill; which was referred to the 
                    Committee on Financial Services

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                                 A BILL


 
   To require the appropriate Federal banking agencies to develop a 
Community Bank Leverage Ratio that is between 8 percent and 8.5 percent 
    for calendar years 2022, 2023, and 2024, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community Bank Relief Act of 2021''.

SEC. 2. COMMUNITY BANK LEVERAGE RATIO.

    Section 201 of the Economic Growth, Regulatory Relief, and Consumer 
Protection Act (12 U.S.C. 5371 note) is amended by striking subsection 
(b) and inserting the following:
    ``(b) Community Bank Leverage Ratio.--
            ``(1) In general.--The appropriate Federal banking agencies 
        shall, through notice and comment rule making under section 553 
        of title 5, United States Code--
                    ``(A) develop a Community Bank Leverage Ratio of 
                not less than 8 percent and not more than 10 percent 
                for qualifying community banks; and
                    ``(B) 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).
            ``(2) Calendar years 2022, 2023, and 2024.--Not 
        withstanding paragraph (1), 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 to apply during the period beginning on 
        January 1, 2022, and ending on December 31, 2024, that is not 
        less than 8 percent and not more than 8.5 percent for 
        qualifying community banks.''.
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