The 1977 Community Reinvestment Act (CRA) is one critical piece in a series of Civil Rights–era legislation that works to expand access to credit. Under the CRA, federally insured depository institutions, or banks, are encouraged to help meet the credit needs of all the communities in which they do business, including low- and moderate-income communities. CRA is intended to ensure that credit flows to all communities in which credit-worthy borrowers reside and in which banks operate. To reach this objective in a banking sector that is constantly evolving, the CRA regulation is being modernized using the rule-making process.

President Raphael Bostic and Board of Governors Vice Chair Lael Brainard discuss why it is essential to modernize the regulations that implement the CRA and the continued relevance that the CRA has in communities in the Southeast and across the country.