Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272861 
Year of Publication: 
2023
Series/Report no.: 
Staff Report No. 1048
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
We study the impact of the Community Reinvestment Act (CRA) on access to consumer credit since 1999 using an individual-level panel and three distinct identification strategies: a regression discontinuity design centered on a CRA-eligibility cutoff; a comparison of neighboring census blocks; and an event study of changes in eligibility. All three rule out a significant effect of the CRA on consumer borrowing. We show that this is in part explained by a shift in mortgages from nonbanks, which are free from CRA obligations, to banks in need of CRA-eligible mortgages. Our findings underscore the pitfalls of a circumscribed regulatory regime.
Subjects: 
Community Reinvestment Act
household finance
banks
JEL: 
G21
G28
Document Type: 
Working Paper

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