Community Bank Capital Clarification Act

Community Bank Capital Clarification Act

This bill amends the Financial Stability Act of 2010 with respect to:

• minimum leverage capital requirements and minimum risk-based capital requirements for depository institution holding companies;
• mandatory deductions from actual capital in the calculation of such minimum capital requirements for certain investments by such institutions, especially in financial subsidiaries; and
• the exemption from such capital deductions for the debt or equity instruments issued by certain smaller institutions.

A depository institution holding company exempted from capital deductions because it had less than $15 billion of total consolidated assets at the end of a quarterly financial reporting period after December 31, 2009, shall continue to be treated as an exempt institution as long it has total consolidated assets of less than $15 billion.