This OCC, together with the Federal Reserve Board and FDIC (together, the agencies), proposed to lower the community bank leverage ratio requirement (equal to tier 1 capital divided by average total consolidated assets) for qualifying banking organizations from greater than 9 percent to greater than 8 percent, consistent with the lower bound provided in Section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. To further relieve burden on community banking organizations, the agencies are also proposed to extend the length of the grace period from two quarters to four quarters. The grace period allows banking organizations that have elected to use the community bank leverage ratio framework to continue to be deemed in compliance with the generally applicable capital rules and considered to meet the well capitalized ratio requirements under the prompt corrective action framework if they cease to comply with the criteria for a qualifying community banking organization.