Community Investment Act

The Community Reinvestment Act (CRA) is a U.S. law enacted in 1977 to encourage banks and financial institutions to meet the credit needs of the communities they serve, particularly lower-income neighborhoods. It aims to combat redlining, where banks historically refused loans to residents in certain areas based on race or income. The CRA requires banks to provide fair access to financial services, promote affordable housing, and support local economic development. Regulators assess banks’ performance in these areas, influencing their ability to expand and operate, thereby fostering greater community investment and economic opportunity.