HR5276119th CongressWALLET

Community Bank LIFT Act

Sponsored By: Representative Kim

In Committee

Summary

Expand eligibility and ease capital rules for community banks. This bill would raise the asset cutoff for the Community Bank Leverage Ratio from $10 billion to $15 billion and reduce the CBLR band from 8–10% to 6–8% to encourage more community banks to opt in.

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  • Community banks. Smaller and mid‑sized community banks would qualify up to $15 billion in assets and could meet a lower leverage band of 6–8%, making the CBLR option simpler and more attractive.
  • Regulators. The Federal Reserve, the Office of the Comptroller of the Currency, and the FDIC would have 180 days to propose implementing rules and 1 year to finalize them to reflect the changes.
  • Review and future changes. The bill would require an interagency review and a report in 150 days with recommendations on ratio calculations, asset treatment, the qualifying‑bank definition, streamlined opt‑in/opt‑out rules, transition grace periods, and any statutory changes needed.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Simpler capital rules for community banks

This bill would make it easier for community banks to use a simpler capital test. Banks with $15 billion or less in assets could opt in, up from $10 billion. The required leverage ratio band would drop to 6%–8%. The Federal Reserve, OCC, and FDIC would propose rules within 180 days and finish within 1 year. The agencies would also review the rule and send Congress recommendations within 150 days to boost participation and cut paperwork. If passed, this could reduce compliance costs and affect some banks’ lending.

Sponsors & CoSponsors

Sponsor

Kim

CA • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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