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Glossary Term: COMMUNITY REINVESTMENT ACT (12 USC 2901) CRA

Definition(s) for COMMUNITY REINVESTMENT ACT (12 USC 2901) CRA:


1. ) Federal law passed in 1977 to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations. The CRA requires that each insured depository institution's record in helping meet the credit needs of its entire community be evaluated periodically. That record is taken into account in considering an institution's application for deposit facilities, including mergers and acquisitions.



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