Banking Agencies Adjust CRA Asset-Size Thresholds for 2023

The Federal Reserve Board and the FDIC adjusted the asset-size thresholds for "small bank" and "intermediate small bank" as required under Community Reinvestment Act ("CRA") regulations.

The banking agencies amended the CRA regulations to set the asset-size threshold amount based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers. The agencies stated that during the 12-month period ending November 2023, the CPI–W increased by 4.06 percent.

As a result, the joint final rule defines:

• small banks as holding less than $1.564 billion of assets as of December 31 in either of the prior two calendar years; and

• intermediate small banks as banks with at least $391 million for both of the two prior calendar years, but less than $1.564 billion as of December 31 for either of the prior two calendar years.

The joint final rule is effective on January 1, 2024. As the changes are mandated by existing regulation, there will be no comment period.