The Community Reinvestment Act: Outstanding, and Needs to Improve


Roberto Quercia, The UNC Center for Community Capital; Janneke Ratcliffe, The UNC Center for Community Capital; with Michael A. Stegman, The John D. and Catherine T. MacArthur Foundation

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Volume 4, Issue 1 | February 1, 2009

The Community Reinvestment Act (CRA) of 1977 responded to charges of redlining and discrimination by financial institutions. It induces depository institutions to “help meet the credit needs of the local communities in which they are chartered” in a manner “consistent with the safe and sound operation of such institutions.” With these guiding principles and broad regulator discretion as to how to implement them, the act has proven flexible and adaptable over time.