Credit Where It Counts: Maintaining a Strong Community Reinvestment Act

Michael S. Barr
headshot of Michael Barr
Michael S. Barr Vice Chair for Supervision - Board of Governors of the Federal Reserve System

May 1, 2005

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the rationale for CRA, demonstrates its effectiveness, and argues that the recent regulatory proposals should be withdrawn or significantly modified.