On December 19, 2022, the Federal Reserve Board and the Federal Deposit Insurance Corporation 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.
These asset-size thresholds are effective January 1, 2023.