CRA (Community Reinvestment Act)

The Community Reinvestment Act (CRA), enacted in 1977, is a U.S. law that encourages banks and lenders to serve all parts of their communities, including low- and moderate-income neighborhoods. It aims to promote fair access to credit, support community development, and prevent discrimination. Banks are evaluated periodically on their efforts to provide housing, business, and community services in underserved areas, encouraging them to invest in areas that might otherwise lack financial resources. The CRA helps ensure that financial institutions contribute to the economic well-being of the diverse communities they serve.