Community Bank LIFT Act

HR 5276, the Community Bank LIFT Act, modifies rules to make it easier for smaller community banks to use a simplified capital calculation method. It raises the asset threshold for qualifying banks from $10 billion to $15 billion and lowers the required capital ratio from 8-10% to 6-8%. The bill also requires federal banking agencies to review the Community Bank Leverage Ratio framework within 150 days, focusing on simplifying the process and encouraging more small banks to adopt it. This directly affects community banks with assets under $15 billion that currently face more complex capital rules.