The Community Reinvestment Act (CRA)

The Community Reinvestment Act (CRA), enacted in 1977, encourages banks to provide financial services and credit to all parts of their communities, including low- and moderate-income neighborhoods. Its goal is to promote economic growth and reduce discrimination by ensuring that banks invest in and support community development activities. Banks are regularly evaluated on their efforts, and these assessments influence their ability to expand, merge, or operate in certain areas. Overall, the CRA aims to foster equitable access to banking resources, helping create more vibrant and inclusive communities.