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Agencies release annual CRA adjustments.

The federal bank regulatory agencies recently announced the annual adjustment to the asset-size standards used to determine how small and medium-sized financial institutions are examined with regard to the Community Reinvestment Act, or CRA.

Financial institutions are evaluated under different CRA examination procedures based upon their asset-size classification. Those meeting the small and intermediate small asset-size threshold are not subjected to the reporting requirements applicable to large banks. The annual adjustments are required by the CRA rules.

Under the new adjustments:

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* "Small bank" or "small savings association" means an institution that, as of December 31 of either of the previous two calendar years, had assets of less than $1.16 billion.

* "Intermediate small bank" or "intermediate small savings association" means a small institution with assets of more than $290 million at the end of both of the previous two calendar years and less than $1.16 billion at the end of either of the previous two calendar years.

Annual adjustments to these asset-size thresholds are based on the 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.

The adjustments are effective January 1, 2012. The agencies--the Federal Reserve, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency--will publish the adjustments in the Federal Register. In addition, the agencies will post a list of the current and historical asset-size thresholds on the website of the Federal Financial Institutions Examination Council.

December 23, 2011
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Publication:Financial Update
Date:Oct 1, 2011
Words:257
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