October 16, 2026, Bank Director, Regulators Raise Definitions of Small Bank Amid Push to Ease Burdens
The biggest headline-grabbing change is the Community Reinvestment Act, which the OCC and FDIC proposed overhauling in July. The Fed has not signed onto the proposal. It would raise the “small bank” threshold that subjects lenders to fewer requirements to $1 billion, up from $412 million. An “intermediate” category would now include banks of up to $10 billion, up from $1.649 billion.
The FDIC and OCC said that would “address the mismatch that has emerged between the current thresholds and a dynamic industry.”
Hundreds of small banks would no longer undergo evaluations for community development work, according to the National Community Reinvestment Coalition, which advocates for stronger CRA requirements. That could affect bank investments in low-income housing tax credits, the group said in a summary. Raising the intermediate threshold to $10 billion, the NCRC added, would put “thousands of branches in underserved communities at greater risk.”
