Community bank leverage ratio framework.

CFR · 2024-01-01 · US · Title 12

(a) (2) For purposes of this section, a qualifying community banking organization means a national bank or Federal savings association that is not an advanced approaches national bank or Federal savings association and that satisfies all of the following criteria: (i) Has a leverage ratio of greater than 9 percent; (ii) Has total consolidated assets of less than $10 billion, calculated in accordance with the reporting instructions to the Call Report as of the end of the most recent calendar quarter; (iii) Has off-balance sheet exposures of 25 percent or less of its total consolidated assets as of the end of the most recent calendar quarter, calculated as the sum of the notional amounts of the exposures listed in paragraphs (a)(2)(iii)(A) through (I) of this section, divided by total consolidated assets, each as of the end of the most recent calendar quarter: (A) The unused portion of commitments (except for unconditionally cancellable commitments); (B) Self-liquidating, trade-related contingent items that arise from the movement of goods; (C) Transaction-related contingent items, including performance bonds, bid bonds, warranties, and performance standby letters of credit; (D) Sold credit protection through ( ( (E) Credit-enhancing representations and warranties; (F) Securities lent and borrowed, calculated in accordance with the reporting instructions to the Call Report; (G) Financial standby letters of credit; (H) Forward agreements that are not derivative contracts; and (I

official document · source cfr-2024 · id 12:§ 3.12