Federal Regulators Redefine CRA Asset-Size Thresholds

Four federal bank regulatory agencies – the Federal Reserve System, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the Office of Thrift Supervision – have announced the annual adjustment to the asset-size thresholds used to define ‘small bank,’ ‘small savings association,’ ‘intermediate small bank,’ and ‘intermediate small savings association’ under the Community Reinvestment Act (CRA) regulations.

The annual adjustments to these asset-size thresholds are based on the year-to-year change in the average of the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers, not seasonally adjusted, for each 12-month period ending in November, with rounding to the nearest million. The new adjustments are the result of the 0.98% decrease in the CPI for the period ending in November.

Under the new definitions, ‘small bank’ or ‘small savings association’ means an institution that, as of Dec. 31 of either of the prior two calendar years, had assets of less than $1.098 billion. ‘Intermediate small bank’ or ‘intermediate small savings association’ means a small institution with assets of at least $274 million as of Dec. 31 of both of the prior two calendar years, and less than $1.098 billion as of Dec. 31 of either of the prior two calendar years.Â

The asset-size threshold adjustments take effect Jan. 1.

SOURCE: Federal Reserve System


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