Explainer 8 – The Community Reinvestment Act

Passed in 1977, the Community Reinvestment Act (CRA) was intended to encourage banks and other financial institutions to lend to lower-income individuals in their communities. Has the CRA succeeded in this goal or is there room for improvement? Aaron Klein and Diego Zuluaga weigh in on this important question.Featuring:- Aaron Klein, Fellow in Economic Studies and Policy Director, Center on Regulation and Markets, Brookings Institution- Diego Zuluaga, Policy Analyst, Center for Monetary and Financial Alternatives, Cato InstituteAdditional Resources:- "The Community Reinvestment Act in the Age of Fintech and Bank Competition" (https://www.cato.org/publications/policy-analysis/community-reinvestment-act-age-fintech-bank-competition)- "Bank-like credit unions should follow bank rules" (https://www.brookings.edu/opinions/bank-like-credit-unions-should-follow-bank-rules/)- "A tool meant to help minorities buy homes is instead speeding up gentrification in D.C." (https://www.washingtonpost.com/opinions/local-opinions/a-tool-that-helps-minorities-buy-homes-is-speeding-up-gentrification-in-the-district/2019/08/09/10c08366-a744-11e9-9214-246e594de5d5_story.html)Visit our website – www.RegProject.org – to learn more, view all of our content, and connect with us on social media.