US: Fed lowers community bank leverage ratio to 8%

The US Federal Reserve announced on Monday that it has temporarily lowered the community bank leverage ratio to 8%.

"Under the interim final rules, the community bank leverage ratio will be 8 percent beginning in the second quarter and for the remainder of calendar year 2020, 8.5 percent for calendar year 2021, and 9 percent thereafter," the Fed explained in its press release."

Market reaction

The US Dollar Index edged slightly lower after this announcement and turned flat on the day near 100.70.