Federal Reserve and FDIC Announce 2026 CRA Asset Size Thresholds, Small Bank Limit Raised to 1.649 Billion

NEW DELHI:  The Federal Reserve System and the Federal Deposit Insurance Corporation FDIC have announced the updated Community Reinvestment Act CRA asset size thresholds for 2026, increasing the limits for small banks and intermediate small banks in line with inflation trends.

The new thresholds will apply from January 1, 2026 or the date of publication in the Federal Register, whichever is later, and will remain in effect through December 31, 2026.

Under the revised definition, a small bank will now be any institution with assets of less than 1.649 billion dollars, compared to the previous limit of 1.609 billion dollars. An intermediate small bank will be defined as a small bank with assets of at least 412 million dollars and less than 1.649 billion dollars, up from the earlier lower limit of 402 million dollars.

The adjustment reflects a 2.51 percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers CPI-W during the twelve month period ending November 2025. Federal banking regulations require the thresholds to be updated annually based on inflation to ensure fair and consistent evaluation of banks under the Community Reinvestment Act.

Although new CRA regulations were finalized in October 2023, they remain blocked by court order because of ongoing litigation. As a result, regulators confirmed that the legacy CRA framework remains in force for the 2026 asset size calculations.

The updated asset thresholds will directly influence how banks are evaluated for CRA compliance, shaping community investment efforts, lending activities and overall banking operations across the United States in 2026.

The Federal Reserve and FDIC stated that current and historical CRA asset size thresholds will continue to be published by the Federal Financial Institutions Examination Council for reference by financial institutions and the public.