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the rationale for CRA, demonstrates its effectiveness, and argues that the recent regulatory proposals should be withdrawn or significantly modified.
Banking and Finance | Economics | Law and Economics
Date of this Version
Michael S. Barr, "Credit Where It Counts: Maintaining a Strong Community Reinvestment Act" (May 2005). University of Michigan Program in Law and Economics Archive: 2003-2009. Working Paper 42.