What is the Community Reinvestment Act?

The Community Reinvestment Act (CRA) is a federal law that was passed in 1977 to encourage banks and other financial institutions to meet the needs of their local communities, including low- and moderate-income neighborhoods. Under the CRA, banks and other financial institutions must maintain records and make information available to the public regarding their lending activities and investments in the community. Those records include home mortgage, small business, and small farm loan applications made by local residents. Banks must also make available reports of the locations and amounts of their credit and investments in the community. The CRA applies to all banks and other financial institutions in Oklahoma, but does not apply to credit unions or savings & loan associations. The Federal Reserve System, in conjunction with other regulatory agencies, is responsible for monitoring compliance with the CRA in Oklahoma. The agencies require each financial institution to file an annual performance evaluation report, which is reviewed to determine whether the institution is meeting the credit needs of its community. The agencies also provide assistance and technical guidance to banks in developing their CRA-compliance plans. The Community Reinvestment Act has had an important impact on the banking industry in Oklahoma. By providing increased access to credit and investment opportunities for low- and moderate-income communities, the CRA has helped to reduce disparities in access to capital, thus improving economic opportunities for underserved communities. As a result, the CRA has helped to make banking services more accessible and equitable throughout the state of Oklahoma.

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What is the Community Reinvestment Act?

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