OCC faults large U.S. banks over debanking practices

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OCC faults banks on debanking

Highlights

The Office of the Comptroller of the Currency found that some of the nine largest U.S. banks restricted customer access based on subjective, nonfinancial criteria such as political or religious affiliation.
The OCC review, covering banks holding a majority of U.S. commercial assets, criticized debanking practices but announced no fines, instead considering policy changes and ongoing interagency collaboration.
The findings intensify debate amid political pressure, following President Trump’s executive order and his $5 billion lawsuit against JPMorgan Chase over alleged politically motivated account closures, which the bank denies.

Findings from the regulator's review

As reported by Reuters, citing the Office of the Comptroller of the Currency, a report released Wednesday examines nine of the largest national banks under its supervision and finds that some restricted customer access to financial services on political, religious or other nonfinancial grounds.

The review, launched in September 2025, covers banks that collectively hold a majority of U.S. commercial banking assets. The regulator says the institutions used subjective criteria instead of clear, measurable and risk-based standards in some cases, and found that concern over public opinion led at least one bank to distance itself from customer affiliations that could be seen as partisan.

The agency criticizes the practices but does not announce fines or other penalties. It says it may consider policy changes to discourage similar conduct and adds that it will keep working with other regulators to assess whether anti-money laundering and counter-terrorist financing compliance programs have contributed to debanking.

Political pressure and banking sector implications

Debanking refers to a bank cutting off an account holder's access to services, often because of legal, financial or reputational concerns. The issue remains a major flashpoint in Washington financial policy after President Donald Trump signed an executive order directing a review of allegations that banks denied services for political reasons.

Conservative politicians and business groups have accused lenders of cutting off companies tied to sectors including fossil fuels, firearms and cryptocurrency. Large banks have denied rejecting customers on political or religious grounds, arguing instead that years of regulatory pressure discouraged them from serving certain sectors and that clearer federal rules are needed on which clients they can and cannot serve.

Comptroller of the Currency Jonathan Gould says in a statement that Americans should have access to financial services regardless of their beliefs, affiliations or political views. The debate has also drawn in individual lenders, with Trump earlier this year filing a $5 billion lawsuit against JPMorgan Chase and CEO Jamie Dimon over account closures he says were politically motivated, an allegation the bank denies.

Our earlier coverage of Bank of America’s third-quarter earnings preview focused on the $1.2 billion U.S. Treasury penalty and the renewed scrutiny it created around the bank’s governance, compliance, and risk controls. We noted that the charge could weigh on results and intensify investor questions about management’s oversight as regulators keep a close watch on large institutions.

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