What is the Community Reinvestment Act?

The Community Reinvestment Act (CRA) is a federal law that requires banks to invest in the communities in which they operate. The goal of the act is to ensure that all communities have access to fair and responsible banking services. In North Carolina, the CRA applies to all state chartered banks, as well as other financial institutions. Banks must meet specific criteria in order to meet their obligations under the CRA. The requirements of the CRA vary depending on the size and activities of the bank. Generally, banks must demonstrate that they are meeting the credit needs of the communities in which they operate. Banks must also invest resources (time, money, or people) into activities that will help to revitalize distressed neighborhoods. These activities can include providing counseling and support services for low-income and moderate-income customers, along with making investments in housing, educational and economic development efforts. In addition, banks must make their services available to all members of the community, regardless of race, sex, ethnicity or other factors. This includes providing access to banking products and services for those in rural, low-income or underserved areas. Banks must also comply with fair lending laws and provide education and training to employees about the principles of fair lending. By meeting the requirements of the CRA, banks can help to create opportunity and prosperity for those living in underserved communities. This helps to ensure that all members of the community have access to safe and equitable banking services.

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What is the Community Reinvestment Act?

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