OCC Flags Debanking Practices at Nine Large Banks

Last week, the Office of the Comptroller of the Currency released preliminary findings from a supervisory review of “debanking” practices at nine of the largest national banks it oversees, concluding that the institutions “made inappropriate distinctions among customers” by maintaining policies that restricted access to services or required escalated reviews for certain lawful industries.

The OCC said that the review was conducted pursuant to the president’s executive order on “fair banking” and focused on whether banks denied services based on political or religious beliefs or lawful business activity. While the agency did not identify specific customer-level examples, it reported that between 2020 and 2023, the banks’ public and nonpublic policies went beyond core financial risk and were often tied to reputational concerns.

Industries cited in the OCC’s findings included oil and gas exploration, coal mining, firearms, private prisons, tobacco and e-cigarettes, adult entertainment, and digital assets. The banks named in the review were JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC, TD, and BMO.

Comptroller Jonathan Gould criticized the use of chartered market power to adopt what the OCC characterized as harmful restrictions, and said the agency will “hold banks accountable,” while continuing to review thousands of complaints for potential political and religious debanking. The OCC also signaled that additional reporting—and possible referrals—may follow as the review continues.