[Based on your content, here is the article structured as requested.]
Short Description: Federal regulators announce updated 2026 CRA asset thresholds, impacting how thousands of small and intermediate banks are evaluated for community lending.
Read Time: 2 minutes, 15 seconds
Main Article:
Federal banking regulators have released the annual adjustments to the asset-size thresholds used to classify banks under Community Reinvestment Act (CRA) regulations. The Federal Reserve Board and the Federal Deposit Insurance Corporation announced that, effective January 1, 2026, the updated thresholds for small banks and intermediate small banks are now in place. These figures are critical as they determine the specific CRA examination procedures a financial institution will undergo, directly influencing how their record of serving low- and moderate-income communities is assessed.
The new asset-size thresholds are adjusted based on inflation, specifically the 2.51 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). For 2026, a small bank is defined as an institution with assets of less than $1.649 billion. An intermediate small bank is a small institution with assets of at least $412 million but still less than $1.649 billion. These designations are based on a bank’s asset size as of December 31 for the prior two calendar years. This annual update ensures the thresholds keep pace with economic changes, affecting regulatory compliance for many regional and community financial institutions.
Understanding these classifications is essential for bank executives and compliance officers. The CRA framework mandates that banks demonstrate they are meeting the credit needs of their entire community. The distinction between small, intermediate small, and large banks dictates the complexity and focus of their CRA evaluation. The updated figures, available through the FFIEC website, provide clarity for strategic planning throughout the 2026 calendar year as institutions work to align their lending, investment, and service activities with regulatory expectations and community needs.
Short Summary:
The Federal Reserve and FDIC have set the 2026 CRA asset thresholds at $1.649 billion for small banks and a minimum of $412 million for intermediate small banks. These inflation-adjusted figures determine the examination standards for assessing how well banks serve their local communities under the Community Reinvestment Act. Financial institutions must review their status to ensure compliance and strategic alignment for the coming year.
