An act implemented by the United States Congress in 1977 which is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods.
There are three agencies responsible for oversight of the financial institutions:
- Federal Deposit Insurance Corporation (FDIC)
- Federal Reserve Board (FRB)
- Office of the Comptroller of the Currency (OCC)
These agencies must consider CRA performance ratings when evaluating applications for future approval of bank mergers, charters, acquisitions, branch openings, and deposit facilities.