The nine largest banks in the United States (US) had imposed restrictions on the provision of financial services to some controversial industries, in a practice commonly described as “debanking,” the regulator that oversees large national banks said in a report published yesterday.
The Office of the Comptroller of the Currency began its review after US President Donald Trump signed an executive order in August directing a regulatory review of all banks to detect any current or past practices that could effectively exclude customers based on their political or religious beliefs.
Without providing specific examples of irregularities at banks, the OCC said its ongoing review had revealed that all entities had policies that, between 2020 and 2023, denied services to some sectors or required levels of scrutiny higher than actual financial risks.
“It is unfortunate that the nation’s largest banks viewed these damaging bank delisting policies as an appropriate use of their government-granted charter and market power. Although many of these policies were carried out in plain sight and even publicly announced, some banks have continued to insist that they did not participate in bank delisting,” Comptroller of the Currency Jonathan Gould said in a statement.
“Going forward, the OCC will hold banks accountable for these actions and ensure that illegal bank foreclosure practices do not continue,” Gould said.
The agency said its investigation remains ongoing and that it plans to hold the banks accountable, including possible referrals to the Justice Department.
The OCC said it plans to continue examining the matter and is reviewing “thousands” of complaints looking for examples of banking exclusion for political or religious reasons.
