Community Reinvestment Act

The Community Reinvestment Act (CRA) is a U.S. law aimed at encouraging banks to serve the credit needs of all community members, particularly those in low- to moderate-income areas. Enacted in 1977, it requires banks to lend responsibly and invest in local neighborhoods, ensuring everyone has access to financial services. Regulators assess banks’ performance in this regard, which can influence their ability to merge or expand. The CRA aims to combat redlining and promote economic vitality in underserved communities by ensuring equitable access to loans and financial resources.