What Is a CRA Rating?
June 18, 2026 · 5 min read
If you've ever wondered whether your bank is actually investing in your community, the answer is publicly available — in the form of a CRA rating. Here's what it means and how to find it.
What does CRA stand for?
CRA stands for the Community Reinvestment Act, a federal law passed in 1977. Congress created it in response to a practice called redlining — where banks accepted deposits from residents of low- and moderate-income neighborhoods but refused to lend money back into those same communities.
The law requires federally insured banks and thrifts to demonstrate that they are meeting the credit needs of the communities where they operate, including low- and moderate-income areas. Regulators periodically examine banks and assign a public rating based on their performance.
Who examines banks?
Three federal agencies conduct CRA examinations, depending on which type of institution they supervise:
- OCC (Office of the Comptroller of the Currency) — examines national banks and federal savings associations
- Federal Reserve (FRB) — examines state-chartered banks that are members of the Federal Reserve System
- FDIC — examines state-chartered banks that are not Federal Reserve members
All three agencies report their results to the Federal Financial Institutions Examination Council (FFIEC), which publishes a consolidated database of every examination going back to the early 1990s. BankScorer makes that database searchable.
The four CRA ratings
Every CRA examination results in one of four ratings:
Outstanding
The bank substantially exceeds CRA requirements. Awarded to roughly 10–15% of examined institutions. Banks with this rating often have aggressive community lending programs, robust investments in affordable housing, and broad branch and ATM access in underserved areas.
Satisfactory
The bank meets CRA requirements. This is the most common rating — roughly 80% of banks receive it. A Satisfactory rating means the bank is doing what the law requires, but hasn't gone above and beyond.
Needs to Improve
The bank has deficiencies in meeting the credit needs of its community. Regulators will typically identify specific areas for improvement, and the bank must address them before its next examination.
Substantial Noncompliance
The bank has serious failures in meeting CRA obligations. This rating can trigger regulatory enforcement actions and — critically — can block the bank from merging with another institution or expanding into new markets.
Why do CRA ratings matter?
CRA ratings have real consequences beyond public accountability:
- Mergers and acquisitions — regulators consider a bank's CRA record when reviewing applications to merge with another bank or acquire a new branch. A poor rating can delay or block approval.
- New branch openings — banks seeking to open branches in new markets must demonstrate satisfactory CRA performance.
- Community leverage — advocacy groups and local governments use CRA ratings to negotiate Community Benefits Agreements, committing banks to specific investments in exchange for regulatory approval.
- Investor and depositor decisions — some institutional investors and municipalities only do business with banks that meet a minimum CRA standard.
How often are banks examined?
Examination frequency depends on the bank's size and prior performance. Large banks (over $10 billion in assets) are typically examined every two to three years. Smaller banks may go four or five years between exams. Banks with poor ratings may be examined more frequently.
How to look up your bank's CRA rating
You can search all 18,000+ US banks on BankScorer. Current ratings are always free — you can see the most recent examination date, the overall rating, and the supervising regulator for any bank. Full history going back to the 1990s is available for a one-time fee of $9 per bank, or unlimited with a Business subscription.