A two-year phase-in of capital standards may be allowed by rule
What the document says“The Federal banking agencies may issue rules that provide for a 2-year phase-in period for a qualifying community bank or its depository institution holding company to meet any Federal capital requirements that would otherwise be applicable to the qualifying community bank or its depository institution holding company, beginning on--”
The section lets the federal banking agencies issue rules giving a qualifying community bank or its holding company two years to come up to the federal capital requirements that would otherwise apply, running from the date the bank became an insured depository institution. A qualifying community bank is one whose combined assets with its holding company, subsidiaries, and affiliates are under $10,000,000,000 and that became insured between January 1, 2026, and December 31, 2028.
What the document actually says“The Federal banking agencies may issue rules that provide for a 2-year phase-in period for a qualifying community bank or its depository institution holding company to meet any Federal capital requirements that would otherwise be applicable to the qualifying community bank or its depository institution holding company, beginning on--”
Bank regulators may write rules giving a new small bank more time. It gets two years to meet the capital rules. The clock starts when the bank is first insured.
Capital is the cushion a bank holds against losses. Meeting the rule on day one is hard for a new bank. Only banks first insured between 2026 and 2028 qualify.
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