Disclaimer: The content on this page is provided for informational purposes only. It does not represent the regulatory standards of the Atlanta Fed or any other part of the Federal Reserve System for assessing compliance with CRA regulations, nor advice on how to fulfill the requirements of the CRA.
What is the CRA? The Community Reinvestment Act (CRA) is a federal law that was enacted in 1977 to encourage banks to meet the credit needs of the communities they serve, including low- and moderate-income (LMI) neighborhoods. By addressing gaps in lending, the CRA promotes access to credit, homeownership, and economic opportunity.
The CRA applies to federally insured depository institutions, including national banks, state-chartered banks, and savings associations. Every bank's CRA performance is evaluated periodically by its primary federal regulator: the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the Office of the Comptroller of the Currency.How does the CRA work? The regulators evaluate a bank's performance in its assessment areas. Assessment areas are geographic areas defined by the bank where the bank maintains deposit-taking facilities, such as branches or ATMs. CRA evaluations focus on how well banks serve their assessment areas, particularly LMI neighborhoods within their assessment areas.
In evaluating a bank's CRA performance, the agencies consider three main criteria: (1) the bank's lending to LMI individuals, businesses, and geographies; (2) the bank's investment in community development projects; and (3) the banking services (including branch locations and online banking) and community development services offered by the bank. The number of criteria vary by bank size, for example, with smaller banks evaluated just on retail lending.
Public involvement is also a key component of the CRA. Community organizations and individuals are encouraged to provide input to the agencies during the CRA evaluation process, which informs the evaluations, and allows communities to help shape their financial future.At the conclusion of a CRA evaluation, banks receive one of four ratings: Outstanding, Satisfactory, Needs to Improve, or Substantial Noncompliance. These ratings are made public, ensuring transparency and encouraging banks to prioritize community needs. Banks'; CRA performance is considered when the agencies analyze certain bank applications, including applications for mergers, acquisitions, and branch openings.
Why is the CRA important? The CRA plays a critical role in building stronger communities. For example, banks may receive CRA credit for:
- Lending to, and investing in, projects that create affordable housing in LMI areas;
- Making loans to LMI individuals and in LMI areas to support homeownership;
- Lending to small business owners who may rely on financing to grow their business, create jobs, and contribute to local economic development; and
- Providing access to branches, ATMs, and retail banking services to LMI individuals and in LMI areas.
In all, the CRA remains a vital tool to help meet the credit needs of communities across the nation.
CRA Modernization: On October 24, 2023, the Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the (OCC) issued a final rule amending CRA regulations. 
The final rule reflects substantial feedback from stakeholders, including feedback on the Board's Advance Notice of Proposed Rulemaking and the Notice of Proposed Rulemaking. For information on the final rules' new requirements and applicability dates, visit the Board of Governors of the Federal Reserve System website on the Community Reinvestment Act Rulemaking page.
- Fact Sheet : Highlights key goals of the CRA final rule: encourage banks to expand access to services; adapt to changes, including mobile and online banking; and providing greater clarity and consistency in the application of regulations.
- Eight key objectives : Building on stakeholder feedback, the key objectives are provided in this overview by the Federal Reserve Board, the FDIC, and the OCC.
- Bank regulation revisions : Memo describing the changes to the Federal Reserve Board's regulations to implement the CRA final rule.
Learn more about the CRA legislation via resources from the Federal Reserve:
- The Community Reinvestment Act (CRA)
- Community Reinvestment Act of 1977
- CRA Analytics Data Tables
- Four decades in, here's how and why the CRA keeps evolving (Timeline)
Resources from the Federal Financial Institutions Examination Council (FFIEC):
Connect with your Federal Reserve supervisory agency:
Explore the CRA performance of banks: