Small Banks to Get Relief From Post-Crisis Financial Rules - ABI

The Federal Deposit Insurance Corp. proposed easing rules for small banks as part of a broader Trump administration effort to loosen restrictions put in place after the financial crisis, the Wall Street Journal reported. Under a plan approved unanimously yesterday by the FDIC, banks with less than $10 billion in assets could be subject to a single leverage ratio for their capital holdings, replacing a more complex set of requirements that applies to larger banks. The minimum ratio small banks must meet to get the relief would be 9 percent of equity to total assets. The proposal would implement a provision of a bank-deregulation law signed by President Trump in May that required regulators to set the community-bank leverage ratio between 8 percent and 10 percent. The FDIC also released a proposal to increase the threshold for full appraisals in residential real-estate transactions to $400,000 from $250,000, potentially easing a hurdle for getting home mortgages across much of the country. That means sales under $400,000 wouldn’t require an appraiser to review the home as part of the mortgage process.

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