Community Development Innovation Review
February 2009
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Past issues
A Tradable Obligation Approach to the Community Reinvestment Act
In articles published in 1994 and 1995, I proposed that the Community Reinvestment Act (CRA) be modified to allow banks to trade their CRA obligations with one another in a manner analogous to cap-and-trade regimes used to address environmental pollution. As in the environmental protection context, a tradable obligation approach to the CRA has the potential to enhance the provision of financial services to low and moderate-income communities at lower cost than does the current command-and-control approach.
Download the article (pdf, 305.58 kb)
Other articles in this issue
A Framework for Revisiting the CRA
The Community Reinvestment Act and the Recent Mortgage Crisis
The 30th Anniversary of the CRA: Restructuring the CRA to Address the Mortgage Finance Revolution
The CRA within a Changing Financial Landscape
The Community Reinvestment Act: Outstanding, and Needs to Improve
It’s the Rating, Stupid: A Banker’s Perspective on the CRA
The Community Reinvestment Act at 30 Years
The Community Reinvestment Act: Past Successes and Future Opportunities
A More Modern CRA for Consumers
CRA Lending During the Subprime Meltdown
Expanding the CRA to All Financial Institutions
What Lessons Does the CRA Offer the Insurance Industry?
The Community Reinvestment Act: 30 Years of Wealth Building and What We Must Do to Finish the Job
The CRA as a Means to Provide Public Goods
Putting Race Explicitly into the CRA
Community Reinvestment Emerging from the Housing Crisis
A Principle-Based Redesign of HMDA and CRA Data