What is the Community Reinvestment Act?

The Community Reinvestment Act (CRA) is a federal law that requires banks and other regulated financial institutions to invest in the communities where they take deposits. It was created to reduce the amount of banking deserts, or areas where there is limited banking services available. In North Carolina, banks must follow the CRA to ensure that all banks within the state are providing equal investment opportunities to all communities regardless of their income levels. The CRA requires banks to lend money, invest, and provide services to all communities, regardless of their financial status. This includes low and moderate-income communities and areas with limited banking resources. Banks must also take into consideration the creditworthiness of the individuals within the community before providing loans or services. Banks must also have a process for assessing the needs of the community, such as providing financial literacy, small business support, and other services that benefit the community. Additionally, banks must report to the Federal Financial Institutions Examination Council (FFIEC) each year on their compliance with the CRA. The FFIEC is responsible for ensuring that banks are meeting the requirements of the CRA. The CRA is an important law that helps to ensure that all North Carolina communities have access to banking services and investment opportunities regardless of their income levels. It helps to reduce banking deserts and creates greater economic opportunity for all North Carolinians.

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What is the Community Reinvestment Act?

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