Bank asset-size thresholds under CRA regs rising for 2022

The asset-size thresholds used to define a “small bank” and “intermediate small bank” under federal anti-redlining Community Reinvestment Act (CRA) regulations will rise for 2022 based on changes in the consumer price index.

With the changes, announced Thursday by the Federal Reserve Board and Federal Deposit Insurance Corp. (FDIC) –

  • “Small bank” means an institution that, as of Dec. 31 of either of the prior two calendar years, had assets of less than $1.384 billion.
  • “Intermediate small bank” means a small institution with assets of at least $346 million as of December 31 of both of the prior two calendar years and less than $1.384 billion as of December 31 of either of the prior two calendar years.

Financial institutions are evaluated under different CRA examination procedures based upon their asset-size classification, the agencies noted. 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.

The new thresholds, to take effect Jan. 1, 2022, are a result of the 4.73% increase in the CPI-W for the period ending in November 2021, the agencies said.

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