New asset-size thresholds to go into effect

WASHINGTON – Federal bank regulatory agencies this month announced the annual adjustment to the asset-size thresholds used to define small banks, small savings associations, intermediate small banks and intermediate small savings associations.
The annual adjustments, required under the Community Reinvestment Act, are evaluated based on the change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers for each 12-month period ending in November, not seasonally adjusted, according to the U.S. Office of the Comptroller of the Currency.
The CPI-W fell 0.42 percent for the period ending in November 2015.
As a result, the definitions change as follows:

  • “Small bank” or “Small savings association” means an institution that, as of Dec. 31 of either 2015 or 2014, had assets of less than $1.216 billion.
  • “Intermediate small bank,” or “intermediate small savings association” means a small institution with assets between $304 million and $1.216 billion.
  • The new asset-size thresholds are effective Jan. 1, which will be published in the Federal Register, according to the OCC.

    No posts to display