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The Community Reinvestment
Act is intended to encourage depository institutions
to help meet the credit needs of the communities in
which they operate, including low- and moderate-income
neighborhoods, consistent with safe and sound banking
operations. It was enacted by the Congress in 1977 (12
U.S.C. 2901) and is implemented by Regulations 12 CFR
parts 25, 228, 345, and 563e. The
Regulation was revised in May 1995.
The Community Reinvestment Act (CRA)
requires that each insured depository institution's
record in helping meet the credit needs of its entire
community be evaluated periodically. That record is
taken into account in considering an institution's application
for deposit facilities, including mergers and acquisitions.
CRA examinations are conducted by the federal agencies
that are responsible for supervising depository institutions:
the Board
of Governors of the Federal Reserve System (FRB),
the Federal Deposit Insurance
Corporation (FDIC), the Office
of the Comptroller of the Currency (OCC), and the
Office of Thrift
Supervision (OTS).
Information on Depository Institutions
Examined by the Federal Reserve:
Information on Depository Institutions Examined
by the Other Agencies:
Publications Pertaining to CRA:
- Closing the Gap: A Guide
to Equal Opportunity Lending
Describes a program for financial institutions seeking
to ensure all loan applicants are treated fairly and
receive equal access to credit. Recommendations cover
responsibilities for bank boards of directors, management,
and staff in hiring, training, underwriting, and marketing
of mortgages.
- Communities
& Banking
Communities & Banking is a quarterly publication
geared for lenders and community development practitioners.
It reports on regional and national trends in community
development, affordable housing, and financial services.
Recent issues include articles on microenterprise,
art as economic development, credit scoring, and CRA-related
lending.
- Gramm-Leach-Bliley
Act--The Sunshine Provision
Disclosure and Reporting of CRA-Related Agreements
Regulation implementing provisions of the Gramm-Leach-Bliley
Act that require reporting and public disclosure of
written agreements between insured depository institutions
or their affiliates and nongovernmental entities or
persons made in connection with fulfillment of Community
Reinvestment Act requirements.
Additional publications may be downloaded from the
Federal Reserve Bank of Chicago's Consumer
and Economic Development Research and Information Center
(CEDRIC). CEDRIC's principal mission is to foster
research related to consumer and economic development
issues such as consumer and small business financial
behavior, access to credit, affordable housing, and
community development and reinvestment.
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