Simplify capital requirements for community banks

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Washington, D.C (Sept. 16, 2019)—Independent Community Bankers of America® (ICBA) President and CEO Rebeca Romero Rainey reiterated calls for federal banking regulators to finalize their rules regarding “Capital Simplification for Qualifying Community Banks” and establish the Community Bank Leverage Ratio or CBLR at 8 percent rather than at 9 percent as proposed, following growing congressional support for more meaningful relief to the nation’s community banks as intended by Congress.

“ICBA has long-advocated simplified capital requirements for community banks, whose simplified balance sheets, conservative lending, and common-sense underwriting shield their regulatory capital from the kinds of losses incurred by the largest and riskiest financial institutions,” said Romero Rainey.


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“We appreciate the strong support by House and Senate leaders on this effort to set an 8 percent CBLR, which would benefit more than 500 additional well-capitalized community banks. We urge regulators to use their statutory authority under the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) to provide regulatory relief for the greatest number of community banks in support of economic development for thousands of communities nationwide.”

Recently, Rep. Denver Riggleman (R-Va.) and a coalition of 18 House Financial Services Committee Republicans called on federal regulators to implement an 8 percent CBLR to further extend the nation’s economic recovery and ensure the continued flow of credit during any future downturn. The House letter follows  several earlier Senate Banking Committee Republican efforts led by Chairman Mike Crapo (R-Idaho) and member Jerry Moran (R-Kan.) urging bank regulators to do right by community bankers and provide needed community bank relief as authorized by Congress.

ICBA looks forward to continuing to work with policymakers on this issue.

About ICBA

The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. With more than 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ nearly 750,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, nearly $4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at

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About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at) - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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