The Federal Reserve Board and the Federal Deposit Insurance Corporation have announced the updated asset-size thresholds for defining “small bank” and “intermediate small bank” under the current Community Reinvestment Act (CRA) regulations for 2024. These regulations establish the criteria by which financial institutions are evaluated on their record of meeting the credit needs of their community, particularly low- and moderate-income neighborhoods, while maintaining safe and sound operations. Asset-size classifications determine the CRA examination procedures for financial institutions, and the thresholds are adjusted annually based on inflation measures. Due to a 4.06 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the period ending in November 2023, the definitions for small banks and intermediate small banks will change. A small bank will now be defined as an institution with assets of less than $1.564 billion as of December 31 in either of the prior two calendar years, while an intermediate small bank will be a small institution with assets of at least $391 million as of December 31 in both of the prior two calendar years and less than $1.564 billion as of December 31 in either of the prior two calendar years. These new asset-size thresholds will come into effect on January 1, 2024. The current and historical asset-size thresholds can be found in a provided link. The asset-size thresholds defined in the October 2023 joint final rule to strengthen and modernize the CRA regulations will apply on January 1, 2026, and are not applicable to this announcement. The Federal Register notice containing the Community Reinvestment Act Regulations Asset-Size Thresholds can be accessed as a PDF. For media inquiries, the contact information for the Federal Reserve Board’s Laura Benedict and FDIC’s Carroll Kim is provided.
Read the original Federal Reserve release here.