Circular
Agencies Announce CRA Asset-Size Threshold Adjustments for Small and Intermediate Small Banks
December 27, 2006
Circular No. 11835

To All Depository Institutions and Others Concerned
in the Second Federal Reserve District:

The federal bank regulatory agencies have 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 2005 CRA regulatory amendments.

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

As a result of the 3.32 percent increase in the CPI index for the period ending in November 2006, the definitions of small and intermediate small banks for CRA examinations will change as follows:

  • "Small bank" means a bank that, as of December 31 of either of the prior two calendar years, had assets of less than $1.033 billion.

  • "Intermediate small bank" means a small bank with assets of at least $258 million as of December 31 of both of the prior two calendar years, and less than $1.033 billion as of December 31 of either of the prior two calendar years.

These asset-size threshold adjustments are effective January 1, 2007.

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