The Community Reinvestment Act (CRA) is a federal statute that encourages financial institutions to meet the credit needs of borrowers in all segments of the communities in which they are chartered, consistent with safe and sound business operations. The federal banking agencies examine banking institutions to determine compliance with the CRA and consider the institution's resulting CRA rating when approving applications for new bank branches or for mergers or acquisitions. The law was designed to reduce discriminatory credit practices in low- and moderate-income neighborhoods.