The best way to understand CRA is through The CRA Triangle below, first presented in Community Reinvestment Performance (Probus Publishing, Chicago, 1993). There are three corners of the CRA Triangle using the CRA acronym: C = Community groups, R = Regulators, and A = America’s banks and thrifts (see below). For CRA to properly work, there must be a constant dynamic of conflict and cooperation among these three corners, and this “dynamic tension” or give and take is critical to good CRA public policy. The CRA Triangle (and good CRA public policy) is distorted when two corners get too close to each other.

The CRA Triangle