CRA for California (CA-CRA)

A California-level Community Reinvestment Act establishes new reinvestment obligations to meet modern-day needs of historically redlined communities in California.

Resolving inequities in
housing and financial services.

What would a CA CRA do?

Require state-chartered banks, credit unions, fintech companies and non-bank mortgage lenders to meet the financial and credit needs of Black, Indigenous and People of Color communities.
Promote the oversight and accountability of financial institutions by allowing the public to provide input on the performance of financial institutions.
Incentivize banks to finance California’s transition to a just and greener economy and discourage financing activities that fuel climate change.
Fills the policy gaps of the Federal CRA.
Address disparities in access to financial services and narrow the racial wealth gap.

The financial services landscape is not the same today as it was in 1977

History of the CRA

The law encourages banks to meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods. The CRA was enacted in 1977 in response to concerns that financial institutions were not adequately serving the credit needs of these communities, often resulting in disinvestment and redlining.The federal Community Reinvestment Act creates a duty for banks to reinvest in communities where they take deposits, including low and moderate-income neighborhoods. But the CRA could do so much more.

Over the years, we’ve worked alongside many of you to strengthen and protect the federal CRA by securing public, detailed, written commitments to communities from banks. We’ve even gone so far as to sue the federal government to uphold this critical piece of legislation. But we imagine a CRA that can do much more for the families and small business owners that call California home. A California CRA will help build an economy that works for everyone who lives in our communities.

Latest CA CRA News

California Coalition Applauds Rare, Failing Reinvestment Grade for City National Bank (CNB): Rise Economy says CNB and its Royal Bank of Canada (RBC) parent are bad for California communities due to redlining and fossil fuel finance practices

In response to the recent release by the Office of the Comptroller of the Currency (OCC) of an extremely rare “Needs to Improve” reinvestment rating for City National Bank, Rise Economy CEO Paulina Gonzalez-Brito issued the following statement: “We are pleased to see the OCC, the national bank regulator, finally use the Community Reinvestment Act...
Read more

Rise Economy Responds to Bank Regulators’ Final CRA Rule

Years in the making, community groups call the joint Community Reinvestment Act Rules a ‘lost opportunity to close racial wealth gaps, while acknowledging reinvestment advancements’  SAN FRANCISCO, Oct. 24, 2023 — After a lengthy multi-year review process and a lawsuit led by Democracy Forward on behalf of Rise Economy (formerly the California Reinvestment Coalition) and...
Read more

Celebrating 46 Years of the Community Reinvestment Act

A landmark civil rights law that established a pathway to stability, wealth-building  for communities of color, but still needs improvements By Paulina Gonzalez-Brito, Chief Executive Officer Today, we celebrate 46 years of the enactment of the Community Reinvestment Act (CRA), a pivotal piece of legislation enacted to address banking marginalization and discriminatory lending practices. Considered...
Read more

Experts explain what a state-specific Community Reinvestment Act means for California

Rise Economy facilitated a conversation with CRA champions on what it takes to move legislation to the finish line By Madison D’Ornellas, Digital Communications Associate Rise Economy on Wednesday brought together fellow economic and housing justice advocates to discuss the pathways toward a California-specific, stronger Community Reinvestment Act (CRA), and how states on the east…
Read more

California Needs a State CRA for a More Fair, Equitable Financial System

California Governor Gavin Newsom recently announced a historic $100 billion budget surplus and signed a $300 billion budget into law. At the same time, researchers published a detailed report on the widening racial wealth gap in the U.S., highlighting how wealth concentration and “the recent role of capital gains,” made during the early pandemic market…
Read more

Learn about Rise Economy's other campaigns.

diverse people protesting