WASHINGTON— The Office of the Comptroller of the Currency has released preliminary findings from an ongoing supervisory review examining allegations that the nation’s largest banks “debanked” customers or businesses based on political, religious or otherwise lawful activities.
The five-page report, required under an Aug. 7 White House executive order, reviews practices at JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC Bank, TD Bank and BMO Bank. The order, titled “Guaranteeing Fair Banking for All Americans,” directs federal regulators to investigate whether banks restricted access to financial services for lawful businesses and to take corrective action within 120 days.
‘Inappropriate Distinctions’
According to the report, from 2020 to 2023 the nine banks “made inappropriate distinctions” among customers based on lawful business activity by maintaining policies that restricted services or required elevated reviews before granting access.
Activities cited as facing restrictions included:
- Oil and gas exploration in the Arctic
- Coal mining and coal-powered plants
- Firearms manufacturing and distribution
- Private prisons, including immigrant detention centers
- Payday and payroll lenders, consumer debt collectors and repossession agencies
- Tobacco and e-cigarette producers and online sellers
- Adult entertainment
- Political action committees and political parties
- Digital asset activities
Reputation Risk Cited
The OCC said banks cited reputation-risk concerns, including negative media coverage and environmental-policy commitments, as reasons for the restrictions.
The agency said it is continuing to assess the effects of these policies over the past five years and is reviewing “thousands of complaints” to identify potential political or religious debanking. Under the executive order, any confirmed instances involving religion must be referred to the attorney general.
The OCC added it intends to refer political cases as well.
