Community Banking

Regulators Roll Back Bank Capital & Leverage Rules—What That Means for Lending Risk

Leave a Comment / Bank Capital, Banking Regulation, Community Banking, Credit Risk, Leveraged Lending / By

Executive Summary Regulators have rescinded longstanding limits on “leveraged lending”—bank loans made to highly indebted companies—by withdrawing the interagency guidance from 2013 on such transactions. Additionally, bank capital rules are being loosened: the enhanced supplementary leverage ratio (eSLR) will be relaxed for large banks and their depository subsidiaries beginning April 1, 2026, and the community …

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US Regulators Ease Post-Crisis Bank Rules: Big Relief for Lending, Risks Ahead

Leave a Comment / Bank Capital & Leverage, Banking Regulation, Community Banking, Leveraged Lending, Private Credit & Nonbank Lenders / By

Executive Summary US financial regulators have rescinded the 2013 leveraged-lending guidance, which limited loans with debt-to-EBITDA ratios above six unless certain repayment criteria were met, calling it “overly restrictive” and driving activity into lightly regulated private credit funds [2][5]. Concurrently, a final rule easing enhanced supplementary leverage ratio (eSLR) requirements will reduce capital held by …

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