Federal ReserveNews

Federal Reserve Board – Agencies release annual asset-size thresholds under Community Reinvestment Act regulations



Please enable JavaScript if it is disabled in your browser or access the information through the links provided below.



December 19, 2022

Agencies release annual asset-size thresholds under Community Reinvestment Act regulations

  • Board of Governors of the Federal Reserve System
  • Federal Deposit Insurance Corporation

For release at 11:00 a.m. EST

The Federal Reserve Board and the Federal Deposit Insurance Corporation today announced the 2023 updated asset-size thresholds used to define “small bank” and “intermediate small bank” under their Community Reinvestment Act (CRA) regulations.

Annual adjustments to these asset-size thresholds are based on the average change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is a measure of inflation.

As a result of the 8.60 percent increase in the CPI-W for the period ending in November 2022, the definitions of small and intermediate small banks for CRA examinations will change as follows:

  • Small bank means an institution that, as of December 31 of either of the prior two calendar years, had assets of less than $1.503 billion.
  • Intermediate small bank means a small institution with assets of at least $376 million as of December 31 of both of the prior two calendar years and less than $1.503 billion as of December 31 of either of the prior two calendar years.

The CRA regulations establish the framework and criteria by which the relevant agencies assess a financial institution’s record of helping to meet the credit needs of its community, including low- and moderate-income neighborhoods, consistent with safe and sound operations.  Financial institutions are evaluated under different CRA examination procedures based upon their asset-size classification. For example, banks meeting the small and intermediate small bank asset-size thresholds are not subject to the reporting requirements applicable to large banks unless they choose to be evaluated as a large bank.

These asset-size thresholds are effective January 1, 2023. A list of the current and historical asset-size thresholds is available here.

Last Update:
December 19, 2022


Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close

Welcome to The Finance Headline

Adblocker Detected! Please turn off your adblocker extension app to continue reading the articles/finance news. With your support, The Finance Headline is able to provide free resources.