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Keywords

Community Reinvestment Act (CRA), Financial Institutions Reform Recovery and Enforcement Act, inner city, banking services

Abstract

This Comment chronicles the Community Reinvestment Act from its adoption to its present status, including its revision under the Financial Institutions Reform Recovery and Enforcement Act of 1989 (FIRREA). It reviews the major criticisms of the CRA's supporters and detractors. It introduces the recent regulations issued by the regulatory agencies responsible for enforcing the CRA and the Congressional response to those regulations. It concludes that the CRA can be a more effective legislative response to the lack of banking services in poorer inner city communities if the recent agencies' regulations are allowed to take effect and if careful steps are taken to extend the CRA to non-bank financial institutions.

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