The Community Reinvestment Act and the Federal Funds Report - Sources of Data for Economic Development Specialists

Research

The U.S. Census has collected data for many years on a number of metrics, many of which have only recently become available online. The expanding use of the Internet by government agencies has resulted in a vast amount of data that is more easily available to the public in general, and researchers and interested community development experts in particular. In this paper we describe two sources of data recently made available online, and discuss potential uses of these data by community and economic development specialists.

In 2004, Federal Financial Institution Regulators (FFIR), a formal interagency body empowered to prescribe uniform principles for financial institutions, announced the availability of lending data related to community development. FFIR made these data available pursuant to the Community Reinvestment Act, which was enacted in 1977 to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low-income neighborhoods.

Another source of data is the Consolidated Federal Funds Report (CFFR), which consists of data on federal expenditures and obligations, including grants, salaries and wages, loans, and insurance. The CFFR covers all the states, the District of Columbia, and outlying territories.

Both sources are available online, and provide a query system for user access. The data are useful for baseline descriptions, and may have some merit in the development of leading or lagging indicators, or as components of indices. Additionally, they may be a source for statistical investigations to assess the effectiveness of public policy.