community reinvestment

Community reinvestment refers to efforts by banks and financial institutions to invest in and support the development of low- and moderate-income neighborhoods. Established by the Community Reinvestment Act of 1977 in the U.S., this initiative encourages banks to provide fair access to credit, affordable housing, and economic opportunities. By investing in these communities, institutions aim to improve local economies, foster growth, and reduce disparities. Essentially, it’s about ensuring that financial services benefit all areas, promoting equality and helping to uplift underserved communities.