Key Highlights
- The Office of the Comptroller of the Currency (OCC) finds top nine U.S. banks restricted services to lawful but controversial industries.
- Some banks denied or delayed services to sectors like oil, coal, firearms, private prisons, adult entertainment, and crypto.
- Comptroller Gould says banks made “inappropriate distinctions” based on politics or social factors and calls it harmful.
The Office of the Comptroller of the Currency (OCC) has released early findings from its review of “debanking” practices at the nine largest U.S. national banks. The agency found that several banks restricted services to customers in lawful but controversial industries.
The review examined internal policies from 2020 to 2023 at JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC Bank, TD Bank, and BMO Bank.
The OCC reviewed the banks because the President ordered regulators to check whether anyone was denied services for their politics, religion, or legal business. The goal was to see if banks were treating customers unfairly for reasons unrelated to financial risk.
Industries and practices affected
According to the OCC, the banks sometimes limited or denied services based on public perception or their own “values.” Industries affected included oil and gas, coal, firearms, private prisons, payday lenders, tobacco and e-cigarette companies, adult entertainment, and digital-asset businesses.
In many cases, banks require extra layers of approval before working with companies in these fields, making access to financial services more difficult.
The agency said it found examples where banks labeled these sectors as having heightened media or activist scrutiny, or criticized them as contrary to the bank’s values, even though the activities were legal.
Response and accountability
OCC Comptroller Jonathan V. Gould said the findings show banks were making “inappropriate distinctions” among customers based on political or social factors. He called, “It is unfortunate that the nation’s largest banks thought these harmful debanking policies were an appropriate use of their government-granted charter and market power.”
Gould noted that some policies were public even as certain banks denied engaging in debanking and said the OCC will “hold banks accountable” once the review is complete.
The agency is still evaluating thousands of consumer complaints, including allegations of political or religious discrimination. It is also examining whether banks shared customers’ financial information with law enforcement in ways that may not have been justified.
Separately, the OCC and the Federal Deposit Insurance Corporation (FDIC) have proposed a new rule that would bar regulators from using “reputation risk” as a basis to pressure banks into cutting ties with certain industries. The public comment period for that proposal remains open until December 29.
OCC’s recent decisions
On the digital-asset front, the OCC has clarified guidance for banks engaging in crypto activities. In November, the agency allowed banks to hold crypto assets to cover network fees, providing an early framework for regulated participation in digital markets.
More recently, the OCC confirmed that national banks can conduct “riskless principal” crypto transactions, matching customer buy-and-sell orders without holding inventory, as long as they follow safety rules and comply with legal requirements.
Comptroller Gould emphasized that crypto firms applying for national trust charters should be treated the same as traditional banks. He noted that digital asset custody and related services have been handled electronically for decades and highlighted that the OCC has received 14 applications this year from major crypto and fintech firms, including Coinbase, Circle, and Ripple.
