Definitions of “small bank” and “intermediate small bank” in 2023 for purposes of anti-redlining laws were announced Thursday by the regulator of national banks, tracking those set 10 days ago by the other two federal bank regulatory agencies. The new definitions take effect Jan. 1.
The Office of the Comptroller of the Currency (OCC) in a bulletin said assets of less than $1.053 billion would define the size of a “small bank” under rules implementing the Community Reinvestment Act (CRA) for 2023, and assets of at least $376 million would define an “intermediate small bank” under those rules.
The definitions essentially exempt the small and intermediate small banks from reporting requirements applicable to large banks, should they choose so.
The asset-size thresholds – previously set Dec. 19 by the Federal Reserve and the Federal Deposit Insurance Corp. (FDIC) — are the annual adjustments to the thresholds based on the average change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation.
The CPI-W increased to 8.60% in the period ending in November 2022, the agencies said.
The new thresholds are for total assets as of the end of this year. For “small bank,” the threshold applies for either of the prior two calendar years. For “intermediate small bank,” the threshold applies for both prior two calendar years and less than $1.503 billion as of Dec. 31 of either of the prior two calendar years.
In 2022, the three agencies set the threshold at $1.384 for small bank, and $346 for intermediate small bank (but less than $1.384 billion).