Policy

Cra

 

Houses

The Community Reinvestment Act is intended to encourage depository institutions to meet the credit needs of their communities.

 

Overview

The Community Reinvestment Act, known as the CRA, was enacted by Congress in 1977 and is implemented through regulations of the four agencies: Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and the Office of Thrift Supervision. The CRA is implemented under the Federal Reserve Board's Regulation BB.

The intention of the CRA is to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, and to be consistent with safe and sound lending practices. The Act was created in reaction to three historical trends related to banking and lending: so-called "redlining," disinvestment and housing discrimination. It was also designed as an incentive to invest in affordable housing and economic development. Under the CRA, examiners periodically evaluate an individual bank's record in helping meet a community's credit needs for a specific assessment area. Applications for future approval of bank mergers, acquisitions and branch openings are evaluated based on this record. CRA focuses on whether credit is available in a specific geographic area.

Regulatory Resources

The Federal Financial Institutions Examination Council (FFIEC) provides detailed information about implementation of CRA regulation.

Regulation BB establishes the CRA framework and criteria of a bank assessment.

The Federal Reserve Board provides information about bank ratings and evaluations, bank designation, strategic plans and quarterly exam schedules.

The Federal Reserve Bank of Richmond's Supervision, Regulation & Credit Department provides bankers with CRA resources and CRA ratings information.

Publications

Revisiting the CRA: Perspectives on the Future of the Community Reinvestment Act
Federal Reserve Bank of San Francisco

The CRA and Subprime Lending: Discerning the Difference
Federal Reserve Bank of Dallas

Did the CRA Cause the Mortgage Meltdown?
Federal Reserve Bank of Minneapolis

June 10, 2009

Governor Elizabeth A. Duke

The Systemic Importance of Consumer Protection
At the 2009 Community Development Policy Summit, Cleveland, Ohio

February 24, 2009

Governor Elizabeth A. Duke

CRA: A Framework for the Future
At the Revisiting CRA Policy Discussion, Washington, D.C.

March 31, 2008

Janet L. Yellen, President and CEO, Federal Reserve Bank of San Francisco

Opening Remarks
To the 2008 National Interagency Community Reinvestment Conference, San Francisco, CA

February 13, 2008

Sandra F. Braunstein, Director, Division of Consumer and Community Affairs

The Community Reinvestment Act
Before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C.

October 24, 2007

Sandra F. Braunstein, Director, Division of Consumer and Community Affairs

The Community Reinvestment Act and Fair Lending Examination Processes
Before the Subcommittee on Domestic Policy, Committee on Oversight and Government Reform, U.S. House of Representatives, Washington, D.C.

March 30, 2007

Chairman Ben S. Bernanke

The Community Reinvestment Act: Its Evolution and New Challenges
At the Community Affairs Research Conference, Washington, D.C.

 

Contact Us

Richmond

Community Development
(804) 697-8434