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FDIC adjusts asset-size thresholds for small financial institutions

180px-National_Bank_OamaruThe FDIC announced the annual adjustment to the asset-size thresholds used to categorize small financial institutions under the Community Reinvestment Act on Wednesday.

Financial institutions are evaluated differently based upon their asset-size classification, and institutions in the small and intermediate small asset-size class are not subject to reporting requirements applicable to big banks.

Under the CRA, regulators are required to adjust the asset-size thresholds each year ending in November based on the change in the average of the consumer price index for urban wage earners and clerical workers.

As a result of the 2.23 percent increase in the CPI for the period ending last month, a “small bank” or “small savings association” includes institutions with less than $1.186 billion in assets as of Dec. 31 of either of the previous two years. An “intermediate small bank” or “intermediate small savings association” is now classified as having at least $296 million as of Dec. 31 of both of the previous calendar years, and less than $1.186 billion.

The new asset thresholds will take effect Jan. 1, and the adjustments will be published in the Federal Register.

In 2012, institutions with less than $1.16 billion in assets were considered to be “small banks” or “small savings associations.” Institutions with at least $290 million in assets and less than $1.16 billion were considered “intermediate small banks” or “intermediate small savings associations.”

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