An institution that receives an Outstanding CRA rating must have an excellent record of helping meet the credit needs of its assessment area, including low and moderate income neighborhoods, in a manner consistent with its resources and capabilities.
In 1977, Congress enacted the Community Reinvestment Act to encourage federally insured depository institutions to help meet the credit needs of the communities in which they operate, including low and moderate income neighborhoods, consistent with safe and sound banking operations. Regulated financial institutions are required by law to demonstrate that their deposit facilities serve the convenience and needs of the communities in which they are chartered to do business. The convenience and needs of communities include the need for credit services as well as deposit services.
