What are the asset thresholds for bank regulatory categories?

Banks are categorized by total consolidated assets: Community Banks (<$10B), Regional Banks ($10B-$100B), Category IV ($100B-$250B), Category III ($250B-$700B), Category II ($700B+ or $100B+ with $75B+ cross-jurisdictional activity), and Category I (GSIBs). Each category has different regulatory requirements for capital, liquidity, stress testing, and governance.

What is the difference between Category I and Category II banks?

Category I banks are Global Systemically Important Banks (GSIBs) subject to the most stringent requirements including GSIB surcharge (1-3.5%), TLAC, eSLR (5% BHC / 6% IDI), and LISCC supervision. Category II banks have $700B+ assets or $100B+ with $75B+ cross-jurisdictional activity, and face full LCR/NSFR, daily FR 2052a, and annual stress testing.

When do banks need to comply with LCR and NSFR requirements?

Full LCR (100%) and NSFR (100%) requirements apply to Category I and II banks. Category III banks have full LCR (100%) and modified NSFR. Category IV banks have reduced LCR (70%) when STWF exceeds $50B. Banks under $100B in assets are generally exempt from LCR/NSFR.

What is the CCAR stress testing threshold?

CCAR (Comprehensive Capital Analysis and Review) applies to banks with $100B or more in total consolidated assets (Category I through IV). Category IV banks undergo biennial supervisory stress testing, while Category III and above face annual testing. Banks under $100B are not subject to CCAR.

What are Prompt Corrective Action (PCA) capital thresholds?

PCA categories: Well-capitalized requires >5% leverage, >6.5% CET1, >8% Tier 1, >10% Total RBC. Adequately capitalized: >4%, >4.5%, >6%, >8%. Undercapitalized: <4%, <4.5%, <6%, <8%. Significantly undercapitalized: <3%, <3%, <4%, <6%. Critically undercapitalized: tangible equity/total assets <2%.

account_balance Reference Guide Updated March 2026

Bank Regulatory Thresholds

Q: What is the difference between Category I and Category II banks?

Category I banks are Global Systemically Important Banks (GSIBs) subject to the most stringent requirements including GSIB surcharge (1-3.5%), TLAC, eSLR (5% BHC / 6% IDI), and LISCC supervision. Category II banks have $700B+ assets or $100B+ with $75B+ cross-jurisdictional activity, and face full LCR/NSFR, daily FR 2052a, and annual stress testing.

Q: When do banks need to comply with LCR and NSFR requirements?

Full LCR (100%) and NSFR (100%) requirements apply to Category I and II banks. Category III banks have full LCR (100%) and modified NSFR. Category IV banks have reduced LCR (70%) when STWF exceeds $50B. Banks under $100B in assets are generally exempt from LCR/NSFR.

Q: What is the CCAR stress testing threshold?

CCAR (Comprehensive Capital Analysis and Review) applies to banks with $100B or more in total consolidated assets (Category I through IV). Category IV banks undergo biennial supervisory stress testing, while Category III and above face annual testing. Banks under $100B are not subject to CCAR.

Q: What are Prompt Corrective Action (PCA) capital thresholds?

PCA categories: Well-capitalized requires >5% leverage, >6.5% CET1, >8% Tier 1, >10% Total RBC. Adequately capitalized: >4%, >4.5%, >6%, >8%. Undercapitalized: <4%, <4.5%, <6%, <8%. Significantly undercapitalized: <3%, <3%, <4%, <6%. Critically undercapitalized: tangible equity/total assets <2%.

2026 Reference -- Requirements by Asset Size, Category & Entity Type

grid_on Threshold Matrix domain Entity Types shield PCA Thresholds update 2025/2026 Changes

Understanding Bank Regulatory Thresholds in 2026

Bank regulatory thresholds in the United States reflect years of post-crisis tightening and subsequent recalibration. Following the 2008 financial crisis, Dodd-Frank imposed sweeping requirements. The 2018 Economic Growth Act (EGRRCPA) raised the EPS threshold from $50B to $250B, and the Fed's 2019 tailoring framework (84 FR 59032) refined categories I-IV. As of 2026, key thresholds are further adjusting with FDICIA audit changes and OCC heightened standards proposals.

Critical thresholds: $10B (CBLR cap, CFPB supervision, Durbin Amendment, Volcker Rule, model risk management), $50B (OCC heightened standards, Reg YY risk management, IHC requirement), $100B (Category IV EPS, CCAR, FR Y-14/Y-15, recovery planning, stress capital buffer), $250B (Category III, full LCR, SLR, SCCL, advanced approaches), $700B+ (Category II, full NSFR, Pillar 3). GSIBs face surcharges (1-3.5%), TLAC, and LISCC supervision.

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grid_on Master Threshold Matrix

Filter by bank tier to highlight relevant requirements

All Community <$10B Regional $10-100B Cat IV $100-250B Cat III $250-700B Cat II $700B+ GSIB

Threshold	Capital	Liquidity	Stress Testing	Governance	Resolution & Recovery	Supervision	Compliance
Community Banks
$346M	--	--	--	--	--	--	CRA small bank ceiling (adjusted annually) Below: small bank lending test only (12 CFR 25.12)
$500M	--	--	--	FDICIA audit (historical)NOW $1B Audit committee required	--	Standard exams	--
$1B	--	--	--	FDICIA S36 annual audit (2026+) FDICIA ICFR mgmt assessmentNOW $5B Independent audit committee	--	Standard exams	--
$1.384B	--	--	--	--	--	--	CRA large bank evaluation begins $346M-$1.384B: intermediate bank (lending + CD test)
$3B	--	--	--	--	--	18-month exam cycle cap CAMELS 1-2, well-cap, no enforcement FR Y-9C filing (BHCs)	--
$5B	--	--	--	FDICIA ICFR mgmt assessment (2026+) Mgmt report on internal controls + attestation Majority independent audit committee	--	FFIEC 041 required (vs 051)	--
Regional Banks
$10B	CBLR eligibility cap Must calculate full risk-based capital Volcker Rule compliance TAL tiers: >$20B full 6-pillar + CEO attest	--	Internal stress testing expected	Formal MRM program (SR 11-7) FDICIA full audit + attestation	--	CFPB supervision Automated BSA/AML TMS	Durbin caps (~$0.21 + 0.05%) CRA large bank test
$50B	--	FR 2052a (if STWF >= $50B)	--	OCC heightened standards (12 CFR 30 App D)MOVING TO $700B Reg YY risk management framework Risk committee (public BHC) IHC required (FBOs >= $50B non-branch)	Informational resolution filing	FDIC scorecard-based assessment Enhanced governance expectations	--
Category IV -- Enhanced Prudential Standards Begin
$100B	EPS capital standards CCAR capital planning Stress capital buffer (SCB) FR Y-14A/Q + FR Y-15	Modified LCR (70%) FR 2052a monthly	Supervisory DFAST (biennial) Company-run DFAST (biennial)	Board risk committee (Sec. 165) Continuous supervision	Targeted resolution plan OCC recovery planningRESCIND?	LFI supervisory framework Branch liquidity buffer (FBOs)	--
$75B Risk Indicators -- Can Trigger Higher Category Requirements (84 FR 59032)
$75B CJA Cross-Jurisdictional Activity	eSLR (Cat II capital) Countercyclical buffer	100% LCR, 100% NSFR FR 2052a daily	Annual supervisory + company-run	--	--	--	Effect: Bumps firm to Cat II regardless of asset size. Full Cat II capital, liquidity, and stress testing apply.
$75B STWF Short-Term Wholesale Funding	--	100% LCR (vs modified) FR 2052a daily (vs monthly)	--	--	--	--	Effect: Upgrades liquidity requirements. LCR modified --> 100%, 2052a monthly --> daily.
$75B NB/OBS Nonbank Assets or Off-Balance Sheet	--	--	Enhanced stress scenarios	Additional risk oversight	--	--	Effect: Can bump Cat IV --> Cat III. Triggers enhanced stress scenarios and risk oversight.
Category III -- Full Annual Stress Testing & Higher Liquidity
$250B	SLR (3%) SCCL (25% of Tier 1) Advanced approaches capital AOCI filter removed	Full LCR (100%) Modified NSFR Daily FR 2052a	Supervisory stress test (annual) Company-run stress test Annual CCAR	--	Enhanced resolution plans	--	--
Category II -- Near-GSIB Requirements ($700B+ or $100B+ with $75B+ CJA)
$700B	eSLR (3%+ buffer) Countercyclical buffer Pillar 3 disclosure (quarterly)	100% LCR (daily) 100% NSFR (full) FR 2052a daily	Supervisory stress test (annual) Company-run stress test	--	Full resolution plan (every 2 years)	OCC heightened standardsNEW AT $700B	--
Category I -- Global Systemically Important Banks
GSIB	GSIB surcharge (1.0-3.5%) TLAC (18% RWA / 7.5% TLE) eSLR (5% BHC / 6% IDI) LTD (6% RWA / 4.5% TLE) SCCL (15% G-SIB to G-SIB)	100% LCR (daily) 100% NSFR (full) FR 2052a daily	CCAR with GMS + counterparty Severely adverse scenarios FR Y-14M monthly retail data	Enhanced board oversight Clean holding company	Detailed living wills Single point of entry	LISCC portfolio (50-100+ examiners) Dedicated supervision team	--

Capital

Liquidity

Stress Testing

Governance

Resolution

Supervision

Compliance

PROPOSED = Pending regulatory change

shield Prompt Corrective Action (PCA) Thresholds

Capital ratio requirements by PCA category (12 USC 1831o)

PCA Category	Leverage	CET1	Tier 1 RBC	Total RBC	Mandatory Actions
Well-capitalized	>5%	>6.5%	>8%	>10%	None
Adequately capitalized	>4%	>4.5%	>6%	>8%	Restrictions on brokered deposits
Undercapitalized	<4%	<4.5%	<6%	<8%	Capital restoration plan; restricted growth; no dividends
Significantly undercapitalized	<3%	<3%	<4%	<6%	All above + recapitalize; restrict senior pay; restrict affiliate transactions
Critically undercapitalized	TE/TA <2%	--	--	--	All above + receivership within 90 days unless exemption

domain Entity Type Reference

Requirements and threshold applicability by organizational structure

Bank Holding Company (BHC)

Domestic US parent controlling one or more banks

Definition: A company that owns or controls a US bank. Registered with and supervised by the Federal Reserve.

Threshold: Total consolidated assets of the BHC.

Category: Based on consolidated BHC assets + risk indicators (CJA, STWF, nonbank assets).

--> All thresholds in matrix apply directly
--> Capital: US Basel III at consolidated level
--> LCR/NSFR: Consolidated calculation
--> FR Y-14A/M/Q, FR Y-15: Required at $100B+

Intermediate Holding Company (IHC)

Required for FBOs with >= $50B US non-branch assets

Definition: A US-incorporated holding company that an FBO must establish to hold US bank and non-bank subsidiaries (excludes US branches/agencies). Required under Reg YY.

Threshold: IHC's own consolidated assets (not CUSO).

Category: IHC assets determine which Cat I-IV requirements apply.

--> Capital: US Basel III applies to IHC
--> LCR/NSFR: Applied at IHC level
--> Stress testing: IHC is tested entity
--> LFI supervision: IHCs >= $100B
--> CUSO used only for: FBO category, branch buffer

Combined US Operations (CUSO)

IHC + US Branches/Agencies of an FBO

Definition: The aggregate US footprint of a foreign bank (IHC assets + US branch/agency assets). A measurement concept, not a legal entity.

Threshold: IHC assets + US branch assets.

Purpose: Determines FBO's overall category and branch liquidity requirements.

--> Used for: FBO category assignment
--> Used for: $75B risk indicators (CJA, STWF, NB/OBS)
--> Used for: Branch liquidity buffer ($100B+)
--> Key: If CUSO trips $75B CJA --> IHC gets Cat II

Insured Depository Institution (IDI)

The chartered bank (national or state)

Definition: A bank or savings association whose deposits are insured by the FDIC. The actual operating bank subsidiary within a BHC structure.

Threshold: IDI's own total assets.

Primary Regulator: OCC (national), State + FDIC (state non-member), State + Fed (state member).

--> $50B+: OCC heightened standards -->$700B
--> $100B+: OCC recovery planning RESCIND?
--> $100B+: FDIC resolution plans
--> $250B+: IDI company-run stress tests
--> CCAR/SCB apply to parent BHC, not IDI

Foreign Banking Organization (FBO)

Non-US bank with US operations

Definition: A foreign bank operating in the US through branches, agencies, or subsidiary banks. Global parent regulated by home country; US requirements apply to US operations only.

IHC Trigger: >= $50B in US non-branch assets --> must form IHC.

Category: Based on CUSO size for overall category; IHC assets for IHC-specific requirements.

--> $50B+ non-branch: IHC required
--> $100B+ CUSO: Branch liquidity buffer
--> FR 2052a: Filed at CUSO level
--> US branches use parent's capital

Savings & Loan Holding Company (SLHC)

Holding company for savings associations

Definition: A company that controls a savings association (thrift). Transferred to Fed supervision under Dodd-Frank. Some grandfathered unitary SLHCs have broader activity powers.

Threshold: Consolidated SLHC assets (same as BHC).

Category: Same Cat I-IV framework as BHCs.

--> All matrix thresholds apply (like BHCs)
--> $100B+: EPS, CCAR, FR Y-14, FR Y-15
--> Capital: Basel III requirements
--> Insurance/commercial SLHCs may have exemptions

update 2025/2026 Regulatory Changes

Final rules and pending proposals affecting thresholds

check_circle

FDICIA Audit Threshold

$500M --> $1B FINAL

Effective January 2026 (12 CFR 363)

check_circle

FDICIA ICFR Mgmt Assessment

$1B --> $5B FINAL

Effective January 2026 -- Internal controls report + attestation

check_circle

FDIC Continuous Examination

$10B --> $30B FINAL

Effective 2025

warning

OCC Heightened Standards

$50B --> $700B PROPOSED

Would exempt most regionals (12 CFR 30 Appendix D)

warning

OCC Community Bank Definition

$10B --> $30B PROPOSED

Expanded community bank treatment

warning

OCC Recovery Planning

$100B+ requirement --> RESCIND PROPOSED

Would eliminate prescriptive requirements

gavel

Tailoring Act (Legislative)

$10B --> $15B | $100B --> $150B | $250B --> $370B PENDING

Inflation indexing proposal -- would adjust all major thresholds

quick_reference_all Quick Reference -- Threshold Lookup

Key dollar thresholds and what triggers at each level

Amount	What Happens	Key Citation
$346M	CRA small bank ceiling (2024, adjusted annually)	12 CFR 25.12
$400K	Residential appraisal threshold	12 CFR 34.43
$500K	Commercial RE appraisal threshold	Interagency Rules
$1B	FDICIA audit (2026+); management controls assessment (historical)	12 CFR 363
$1.384B	CRA intermediate bank ceiling (2024)	12 CFR 25.12
$3B	18-month exam cycle cap; FR Y-9C threshold	EGRRCPA; FR Y-9C
$5B	FFIEC 051 eligibility cap; FDICIA ICFR assessment (2026+)	FFIEC; 12 CFR 363
$10B	CBLR cap; CFPB; Durbin; formal MRM; BSA TMS; large bank CRA; Volcker	Multiple
$50B	OCC heightened standards; FDIC scorecard; Reg YY; IHC (FBOs)	12 CFR 30 App. D
$100B	Category IV; EPS; stress testing; resolution planning; FR Y-14; FR 2052a; SCB	12 CFR 252
$250B	Category III; full LCR; SLR; SCCL; advanced approaches; AOCI filter removed	84 FR 59032
$700B	Category II; full NSFR; Pillar 3; CCyB; full resolution plan	84 FR 59032
$75B CJA	Category II alternative trigger (cross-jurisdictional activity)	84 FR 59032
$75B NB/STWF/OBS	Category III alternative triggers (nonbank assets, STWF, off-balance sheet)	84 FR 59032
GSIB	Category I; surcharge (1-3.5%); eSLR; TLAC; LISCC; clean holding company	12 CFR 217 Subpart H