Bank Analysis School - September 2023

Internal Use Only

Capital as measured using a leverage ratio, in combination with strong bank examinations and supervision practices, is the best means to ensure sound banks, a safely funded insurance system, and a strong economy. “ ” Former FDIC Vice Chairman Thomas Hoenig

Internal Use Only

Community Bank Leverage Ratio

9% Tangible Equity to Total Assets

Exempts approximately 80% of community banks from calculating risk-based capital