H.R. 5276 · On the floor · Finance and Financial Sector

Community Bank LIFT Act

What it does

Increases the asset threshold for qualification as a community bank from $10 billion to $15 billion.
Reduces the statutory range for the community bank leverage ratio from 8%-10% to 6%-8%, easing capital requirements.
Requires the Federal Reserve, OCC, and FDIC to jointly review and report on the leverage ratio and its implementation, including recommendations to reduce regulatory compliance burden.

Official summary

Community Bank Leverage Improvement and Flexibility for Transparency Act or the Community Bank LIFT Act This bill relaxes requirements related to the community bank leverage ratio, which is a simplified capital standard applicable to qualified community banks. Community banks qualify by having less than $10 billion in assets, along with meeting other criteria. Specifically, the bill increases this asset limit to $15 billion. Additionally, it reduces the statutory range of the leverage ratio from 8%-10% to 6%-8%. (The specific rate is set by regulation. A reduction in the leverage ratio eases capital requirements.) The Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation must review and report on the leverage ratio and the rules issued to carry out its implementation. The report must include a consideration of how to modify the leverage ratio to encourage more participation in the community bank leverage ratio framework, with a focus on community banks with fewer assets and providing relief from regulatory compliance burdens. After this report is issued, the participating agencies must propose and finalize rules to…

Latest action

Nov 4, 2025: Placed on the Union Calendar, Calendar No. 319.

Committee: House Financial Services