Community Reinvestment Act
The Community Reinvestment Act of 1977 (CRA) encourages certain insured depository institutions to help meet the credit needs of the communities in which they are chartered, including low- and moderate-income (LMI) neighborhoods, consistent with the safe and sound operation of such institutions.
The CRA requires federal banking agencies to
- assess the institution’s record of meeting the credit needs of its entire community, including LMI neighborhoods, consistent with the safe and sound operation of such institution, and
- take such record into account in its evaluation of an application for a deposit facility by such institution.
On October 24, 2023, the OCC, the Federal Reserve Board (FRB), and the Federal Deposit Insurance Corporation (FDIC) jointly issued a final rule to strengthen and modernize the Community Reinvestment Act (CRA) regulations to better achieve the purpose of the CRA.