Community Reinvestment Act (CRA)

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 all communities, particularly low- and moderate-income areas. It aims to prevent redlining—denying services based on racial or economic factors. Under the CRA, banks are evaluated on their lending practices and community investment efforts, promoting responsible loans and investments in underserved neighborhoods. The goal is to ensure equal access to financial services, fostering economic growth and community development for everyone.