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Federal Reserve lowers community bank leverage ratio – Metro US

Federal Reserve lowers community bank leverage ratio

FILE PHOTO: The U.S. Federal Reserve Board building in Washington
FILE PHOTO: The U.S. Federal Reserve Board building in Washington

WASHINGTON (Reuters) – The Federal Reserve announced Monday it was lowering the community bank leverage ratio to 8%, which would gradually rise back to 9% by 2022.

The rule easing was ordered as part of a broad economic relief package approved by Congress in March. Under the new rules, the leverage cap will lower in the second quarter of 2020, rise to 8.5% in 2021, and return to its previous 9% level at the beginning of 2022.

(Reporting by Pete Schroeder; Editing by Alison Williams)