What is the Community Reinvestment Act?

The Community Reinvestment Act (CRA) is a federal law in the United States passed in 1977 to encourage banks and other financial institutions to invest in and lend to underserved and underbanked populations in their local communities. This law requires these organizations to meet certain lending requirements and to provide a greater level of public services in the communities most in need. In South Carolina, the CRA applies to all banks and other financial institutions that are regulated by the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC). The CRA was created to prevent discrimination from occurring within the banking sector, as well as to promote economic growth and development in underserved communities. Banks are required to review their lending, services, and investments to ensure that they are providing equitable and fair services throughout the state. Under the CRA, banks must demonstrate their efforts in providing services to communities of varying economic levels, including poorer neighborhoods or areas struggling with economic decline. Banks are also expected to make findings available to the public, to ensure accountability and compliance. In South Carolina, the South Carolina State Board of Banking oversees the enforcement and implementation of the CRA. The board is responsible for evaluating banks’ compliance with the CRA, submitting reports to the FDIC, and receiving comments from the public. The board also serves as an advocate for communities by communicating the goals of the CRA to the banking industry and encouraging them to fulfill their responsibilities.

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What is the Community Reinvestment Act?

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