Community Reinvestment Act


What It Is

The Community Reinvestment Act (CRA) was enacted in 1977 to help meet the needs of borrowers in low-to-moderate income neighborhoods and since then banks have invested trillions of dollars into underserved communities. The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Federal Reserve Board) and the Federal Deposit Insurance Corporation (FDIC) are now working to update CRA for the first time in decades.

Why It Matters

While the banking industry has evolved significantly over the last 40+ years, CRA has largely remained untouched since 1995. Banks have long called for policymakers to modernize CRA to reflect today’s banking landscape and leverage the innovative capabilities of financial institutions to optimize investments and reach more people and communities in need.

What We Believe

We support the implementation of a streamlined, modernized CRA rule that reasonably accounts for the operational reality of the banking industry.
The modernization of CRA should provide banks more clarity as to which investments will count – allowing for them to do more, not less. This includes the formalization of some metrics, clearer Community Development Definitions and excluding consumer credit cards from the rule.
Regulators should consider the compliance burdens for CRA that could lead to reduced lending. And also consider extending the implementation timeframe, given the significant time and resources required for banks to comply with a complex new rule.


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