Agencies finalize CRA thresholds

Adjustments to asset-size thresholds for Community Reinvestment Act (CRA) regulations are set with final rules issued — and effective — today by the three federal banking regulatory agencies.

The Federal Reserve, OCC and FDIC have filed a Joint final rule (technical amendment) to adjust the asset thresholds that define define “small bank” or “small savings association” and “intermediate small bank” or “intermediate small savings association” for purposes of CRA.

According to the joint filing, the adjustment to the threshold amount is based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPIW); it is required by CRA.

Additionally, FDIC is amending its CRA Notice requirements to reflect two technical changes concerning the manner in which the agency will receive public comments considered in the CRA examination process.

Under the new rule, “small banks” are defined as those with assets of less than $1.226 billion, and “intermediate small banks” (or savings associations) are defined as those with assets of at least $307 and less than $1.226 billion. Financial institutions meeting the small- and intermediate-small institution asset-size thresholds are not subject to CRA reporting requirements applicable to large banks and savings associations unless they choose to be evaluated as a large institution.

CRA is an “anti-redlining” law for mortgage lending.

Community Reinvestment Act Regulations

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