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Community Reinvestment Act

2022–2023 Update

Regulators issue proposed changes to modernize the Community Reinvestment Act

On May 5, 2022, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency issued a Notice of Proposed Rulemaking (NPR) that would amend their regulations implementing the Community Reinvestment Act (CRA) to update how CRA activities qualify for consideration, where CRA activities are considered, and how CRA activities are evaluated. The three agencies invited public comment through this notice, and the Federal Reserve Bank of Minneapolis hosted a number of events for stakeholders across the Ninth Federal Reserve District and all of Indian Country to share more information about the CRA and the NPR, including how to submit formal comments to the Board. The three agencies are now taking the comments into consideration as they refine and finalize the new rules. For more information about the proposed regulatory changes, see the Board’s press release, “Agencies issue joint proposal to strengthen and modernize Community Reinvestment Act Regulations.”

About the CRA

The Community Reinvestment Act (CRA) is a 1977 federal law that encourages banks and other depository institutions to help meet the credit needs of their communities, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations.

The CRA is at the heart of many partnerships between financial institutions and community development organizations.

The act requires each insured depository institution’s record in its efforts to meet the credit needs of its entire community be evaluated periodically. That record is taken into account in considering an institution's application for expanded deposit facilities, including mergers and acquisitions.

CRA examinations are conducted by the federal agencies responsible for supervising depository institutions: the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency. Each of these sites includes the examination schedules and performance ratings for the institutions supervised by that regulator.

Interagency information about the CRA is available from the Federal Financial Institutions Examination Council.

The regulations that implement the CRA were revised substantially in 1995, reviewed in 2002, and significantly revised in 2005.

How do fair lending laws and the Community Reinvestment Act interact?

The fair lending laws and the CRA view lending through two different lenses: one focused on protected classes and one focused on income level. Yet despite the distinction, the laws can work in concert to promote more equal access to credit. Learn more in our March 2018 feature, Fair lending laws and the CRA: Complementary tools for increasing equitable access to credit.

Watch now: A video to get to know the CRA better

The CRA helps bring billions of dollars in bank capital to low- and moderate-income communities every year, but its provisions aren’t always well understood. Whether you’re a banker, community leader, or consumer, this short video from the Federal Reserve will help you get to know the CRA better.