Us Congress House Bill HB5276

Us Congress 2025-2026 Regular Session

• Introduced: 9/10/25
• Refer: 9/10/25
• Report Pass: 9/16/25

Caption

Community Bank LIFT Act Community Bank Leverage Improvement and Flexibility for Transparency Act

Impact

The passage of HB 5276 is expected to facilitate increased lending and financial support from community banks to small businesses and local economies. By adjusting the leverage ratio requirements, the bill aims to simplify compliance for community banks, allowing them to hold fewer capital reserves while still maintaining safety and soundness. This shift is seen as beneficial for fostering economic growth at the local level and enhancing financial stability by encouraging more banks to opt into the CBLR framework.

Summary

House Bill 5276, known as the Community Bank LIFT Act, aims to amend the Economic Growth, Regulatory Relief, and Consumer Protection Act by adjusting the Community Bank Leverage Ratio (CBLR). The primary focus of the bill is to increase the asset threshold for qualifying community banks from $10 billion to $15 billion, as well as lowering the required leverage ratio from between 8% and 10% to a range of 6% to 8%. This change is intended to promote greater participation among smaller banks in the CBLR framework and ease regulatory burdens, helping them better serve their communities.

Contention

However, the bill has raised some concerns among various stakeholders. Opponents argue that lowering the capital requirements could lead to increased financial risks for community banks, particularly during economic downturns. Critics express fears that this could compromise the safety of the banking system as a whole, given that capital reserves serve as a buffer against potential losses. Additionally, there are calls for thorough evaluations of how these changes may affect risk profiles and the overall banking landscape, suggesting that a cautious approach is necessary to avoid unintended negative consequences.