Community Reinvestment Act
The community reinvestment act (CRA) is a law that says banks have to lend money to people and businesses in the neighborhoods where they have branches.
Think about it like this. Your piggy bank is like a bank. You save your allowance money in it. If your friend asks to borrow some money, you might say yes if you trust him or her.
Banks are like big piggy banks. They have lots of money, but they also have rules. The CRA is one of those rules. It says that banks can't just keep all their money for themselves. They have to help people in their area who want to buy a house, start a business, or fix up their home.
This is good for your community because it means more people can have a chance to get money to buy a house, start a business, or make their home better. It also means that banks can't just ignore your community and take your money. They have to help people where they have branches.
Just like you have to share your piggy bank with your friends, banks have to share their money with people who need it in their community. And that's good for everyone.
Think about it like this. Your piggy bank is like a bank. You save your allowance money in it. If your friend asks to borrow some money, you might say yes if you trust him or her.
Banks are like big piggy banks. They have lots of money, but they also have rules. The CRA is one of those rules. It says that banks can't just keep all their money for themselves. They have to help people in their area who want to buy a house, start a business, or fix up their home.
This is good for your community because it means more people can have a chance to get money to buy a house, start a business, or make their home better. It also means that banks can't just ignore your community and take your money. They have to help people where they have branches.
Just like you have to share your piggy bank with your friends, banks have to share their money with people who need it in their community. And that's good for everyone.