The Community Reinvestment Act (CRA) has helped to revitalize low- and moderate-income
communities and provided expanded opportunities for low- and moderate-income
households. Recent regulatory steps aimed at alleviating burdens on banks and
thrifts are unwarranted, and may diminish small business lending as well as community
development investments and services. This policy brief explains the rationale for CRA,
demonstrates its effectiveness, and argues that the recent regulatory proposals should be
withdrawn or significantly modified.