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Promoting Consumer Protection and Community Development

The Federal Reserve advances supervision, community reinvestment, and research to improve understanding of the impacts of financial services policies and practices on consumers and communities.


 (alexmak72427 / iStock / Getty Images)

adapted from content in the Board of Governors's overview The Fed Explained

The Federal Reserve is responsible for promoting consumer protection and community development to help ensure a fair and transparent financial services marketplace that benefits all Americans. The Federal Reserve understands that healthy communities and well-served consumers help support and drive economic growth.

The structure of the Federal Reserve System helps bring together many different perspectives from across the U.S. to form a better understanding of the U.S. economy. In 1977, Congress passed the Community Reinvestment Act (CRA). The CRA requires each federal bank regulator, including the Fed, to evaluate banks on the extent to which they serve the credit needs of low- and moderate-income neighborhoods in their geographic markets.

The Fed promotes consumer protection and community development through its work in banking supervision and regulation; community-focused research and analysis; and regular communication with the communities served by all 12 Federal Reserve Banks.

Learn more at the links below: