NEW YORK— Major U.S. banks are lobbying federal regulators for national standards on core banking services that would override state-imposed rules, according to a new report from Reuters, which cited three sources familiar with the matter.
The push centers on persuading the Office of the Comptroller of the Currency (OCC) to issue uniform regulations governing lending, bond issuance, investment banking services and anti-money laundering compliance, Reuters said, adding that large banks in particular want the OCC to rein in state powers they argue complicate operations and invite political interference.
‘Debanking’ is Issue
At the heart of the effort is the practice of so-called “debanking,” in which banks are accused of denying services based on a customer’s political or religious affiliations. Reuters noted states including Texas, Florida, California and Tennessee have adopted measures penalizing banks for policies on firearms, fossil fuels, climate change and other social issues, creating compliance headaches and limiting access to municipal markets.
Bankers argue that national standards would replace a patchwork of conflicting state laws with a single regulatory regime, reducing risks and costs. Reuters noted that opponents, including some state officials and the Conference of State Bank Supervisors (CSBS), counter that state oversight is essential to protect consumers and tailor rules to local needs. The CSBS has previously warned that eliminating the dual federal-state system could undermine financial stability and consumer protection, Reuters said.
Focus Follow SCOTUS Decision
The renewed focus on preemption follows a 2024 U.S. Supreme Court decision involving Bank of America that affirmed federal law takes precedence over state laws for national banks. President Trump reinforced the issue earlier this month with an executive order on debanking intended to clarify and standardize rules, Reuters said.
According to Reuters, banks see momentum after securing looser federal stress test and capital requirements earlier this year. One source told Reuters that lenders are emboldened to push for broader preemption and have already raised the issue in meetings with OCC officials.
The regulator declined to comment to Reuters.
Support from Groups, Big Banks
The Bank Policy Institute and the American Bankers Association have expressed support, as has JPMorgan, which said it’s in favor of a national standard barring political or religious discrimination in banking.
