December 17, 2020

Agencies Release CRA Asset-Size Thresholds Adjustments for Small and Intermediate Small Institutions for 2021

The Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation today announced the annual adjustment to the asset-size thresholds used to define small bank and intermediate small bank under the Community Reinvestment Act (CRA) regulations.

The annual adjustments are required by the CRA rules. Financial institutions are evaluated under different CRA examination procedures based upon their asset-size classification. Those meeting the small and intermediate small institution asset-size thresholds are not subject to the reporting requirements applicable to large banks unless they choose to be evaluated as a large institution.

Annual adjustments to these asset-size thresholds are based on the change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), not seasonally adjusted, for each 12-month period ending in November, with rounding to the nearest million.

As a result of the 1.29 percent increase in the CPI-W for the period ending in November 2020, the definitions of small and intermediate small institutions for CRA examinations will change as follows:

These asset-size threshold adjustments are effective January 1, 2021. The agencies will publish the final rule in theĀ Federal Register. In addition, the agencies will post a list of the current and historical asset-size thresholds on the website of the Federal Financial Institutions Examination Council (https://www.ffiec.gov/cra).

Federal Register Notice

This post was originally published here.