As Washington returns from the holiday recess, several policy developments have come forward in the last month offer important signals for business depositors and the banks that serve them. These bills reflect a broader conversation in Washington about how the U.S. banking system, particularly community banks, should be regulated and positioned to support economic activity.
One of the most consequential actions underway involves proposed changes to the Community Bank Leverage Ratio (CBLR) framework, a regulatory construct that simplifies capital requirements for qualifying community banks. In late 2025, federal banking agencies issued a notice of proposed rulemaking[1] that would lower the CBLR threshold from 9 percent to 8 percent and extend the grace period for banks to return to compliance if they fall below that threshold. By expanding eligibility and offering more flexibility, the proposal aims to reduce regulatory burden while maintaining safety and soundness. Understanding what comes next will be important for how community banks balance capital, lending, and deposit strategy.
At the same time, a new legislative initiative appeared in the House of Representatives on January 7 with the introduction of the Main Street Capital Access Act (H.R. 6955)[2]. This bill focuses on revitalizing community banking by promoting the formation of new de novo institutions and adjusting capital requirements. Notably from a deposit safety perspective, this bill includes a requirement that the Federal Financial Institutions Examination Council develop recommendations to revise the CAMELS rating system. This points to ongoing appetite to “right size” regulation and could impact the funding structure of the Deposit Insurance Fund. While this proposal faces a long path through committee and floor consideration, its emergence signals continued interest among some lawmakers in lowering barriers to entry and supporting local-bank competition.
These developments fit into a broader pattern of regulatory signals coming from the Office of the Comptroller of the Currency (OCC)[3], which has, over the past year, underscored its intent to reduce unnecessary regulatory burden on community banks and tailor supervision to actual risk. This includes rolling back certain examination requirements and prioritizing a risk-based focus that aligns oversight with institution size and business mix. These actions will undoubtedly support the health and competitiveness of community banks.
What does this mean for business depositors? First, policy discussions that expand flexibility for community banks have the practical effect of helping those banks better serve local businesses, nonprofits, and municipal entities. When regulatory frameworks recognize that smaller institutions operate differently from global systemically important banks, the result can be greater lending capacity and more competitive deposit offerings. Essentially, when community banks can focus on serving you, and not the regulators, depositors benefit.
Second, as regulators and lawmakers refine capital and leverage standards, business depositors should pay attention to how these changes affect liquidity dynamics, capital cushions, and competitive pressures on deposit pricing. For example, adjustments to capital frameworks can influence how a bank balances reserve holdings against lending and deposit growth — which in turn affects the products and rates available to depositors.
It is important to note, the regulatory environment remains dynamic. Bills can evolve quickly in committee, and proposals issued by regulators today may inform final rules tomorrow. As this process unfolds, Ampersand will continue to monitor developments with an eye toward how they affect the organizations and deposit strategies of business clients.
[1] https://www.fdic.gov/news/press-releases/2025/agencies-issue-proposal-enhance-community-banks-ability-serve-their
[2] https://bankingjournal.aba.com/2026/01/house-republicans-propose-bill-to-overhaul-community-bank-regulation
[3] https://www.occ.treas.gov/news-issuances/news-releases/2025/nr-occ-2025-110.html
