About the Community Reinvestment Act

What Is the Community Reinvestment Act?

The Community Reinvestment Act (CRA) is a federal law enacted in 1977 to encourage banks to meet the credit needs of the communities they serve, including low- and moderate-income (LMI) neighborhoods. By addressing gaps in lending, the CRA promotes access to credit, homeownership and economic opportunity.

The CRA applies to federally insured depository institutions, including national banks, state-chartered banks and savings associations.

Why Is the CRA Important?

The CRA plays a critical role in building stronger communities. For example, financial institutions may receive CRA credit for:

  • Lending to, and investing in, projects that create affordable housing in LMI areas
  • Making loans to LMI individuals and in LMI areas to support homeownership
  • Lending to small-business owners who may rely on financing to grow their businesses, create jobs and contribute to local economic development
  • Providing access to branches, ATMs and retail banking services for LMI individuals and in LMI areas
Woman smiles as she sits across from a colleague.

Past initiatives at the St. Louis Fed, such as Investment Connection and others, have played a valuable role in sharing information about community development techniques with the public, financial institutions and other organizations looking to fund community and economic development in LMI communities across the region.

The Federal Reserve and the CRA

The following resources contain additional information about the Federal Reserve’s role in the CRA.

Resources from the Federal Reserve

Resources from the Federal Financial Institutions Examination Council (FFIEC)

Connect with your federal supervisory agency