Reinvestment Alert 20: CRA and CDFIs Revisitied:The Importance of Bank Investments for the Community

Katy Jacob and Malcolm Bush

Demonstrates the importance of bank investments in community development financial institutions (CDFIs) that are crucial actors in low-income community development. Utilizing a new data source covering 379 CDFIs across the country, finds that bank investments are crucial to CDFIs. Provides evidence of the importance of the investment test portion of CRA exams and calls for an increase in the appropriation of the federal CDFI Fund.