Community Reinvestment Act:

Preliminary Results of GAO's Study on CRA Problems and Proposed Reforms

T-GGD-95-113: Published: Mar 8, 1995. Publicly Released: Mar 8, 1995.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO discussed the implementation of the Community Reinvestment Act (CRA). GAO noted that: (1) CRA requires bank regulators to assess banks' community lending performance during examinations; (2) community groups urged the passage of CRA to curb what they believed to be a lack of adequate investment in low- and moderate-income areas; (3) community groups have raised concerns about limited CRA enforcement and insufficient disclosure of information on banks' community lending performance; (4) bank regulators have proposed reform initiatives to clarify bank performance standards, make assessments more consistent, improve enforcement, and reduce the cost and burden of CRA compliance; (5) successful implementation of the proposed reforms can be achieved if regulators provide clear guidance and comprehensive training for all examiners performing CRA assessments; (6) many bankers, regulators, and community groups have taken part in a variety of initiatives to improve banks' community lending practices; (7) through these initiatives, many banks have been able to overcome lending barriers; (8) some regulators are developing new techniques to reduce bank examination time or shift the responsibility for conducting such analyses to the banks; and (9) some bankers have lowered the high transaction costs and credit risks of community development loans by sharing those costs and risks through multi-bank programs.

Feb 12, 2015

Dec 17, 2014

Dec 12, 2014

Dec 11, 2014

Oct 23, 2014

Jul 29, 2014

Jun 6, 2014

May 14, 2014

May 9, 2014

Feb 6, 2014

Looking for more? Browse all our products here