Oct 14 (Reuters) - A top US bank regulator issued a report on Wednesday finding some of the country's largest banks unfairly denied services to some clients on political, religious or other grounds, but stopped short of imposing penalties.
The debanking report from the Office of the Comptroller of the Currency covered nine of the nation's largest banks by asset size. The regulator found each had policies restricting some clients' access to financial services based on subjective criteria rather than
financial risk.
Banks have said they close accounts or deny services because of legal, financial or reputational risks, not politics.
The regulator criticized the banks for the practices, but did not indicate any sanctions or punishments were forthcoming. It said it may consider policy changes to discourage such activity.
FAIR ACCESS IS A MANDATE: REGULATOR
The review, which began in September 2025, scrutinized banks that collectively hold a majority of US commercial banking assets.
"Americans should have access to financial services regardless of their beliefs, affiliations, or political views. Fair access to financial services is not a mantra — it is a mandate," Comptroller of the Currency Jonathan Gould said in a statement.
After President Donald Trump signed an executive order directing a review of alleged debanking, regulators and banks moved to eliminate the use of reputation risk in assessing clients, though the issue remains contentious.
Conservative politicians and business groups have accused banks of cutting off companies in sectors including fossil fuels, firearms and cryptocurrency, making debanking a flashpoint in Washington financial policy.
Large banks have denied rejecting customers on political or religious grounds, arguing instead that years of aggressive regulatory pressure discouraged them from serving certain sectors and urging Washington to establish clearer rules on who they can and cannot serve.
The OCC found that concerns about public opinion had led at least one bank to distance itself from certain customer affiliations that could be viewed as partisan. It added that banks generally lacked clear, measurable standards and objective, risk-based criteria for assessing reputational risks associated with customer relationships.
"The OCC will continue to work with our regulatory partners to further assess the extent to which bank policies implementing money laundering and terrorist financing program requirements have contributed to debanking and will take appropriate action as needed," the report said.
Earlier this year, Trump filed a $5 billion lawsuit against JPMorgan Chase and its CEO Jamie Dimon, alleging the bank closed several of his accounts for political reasons. JPMorgan, the largest US bank, has denied closing accounts on political or religious grounds, and filed a motion to dismiss the lawsuit on Tuesday.
A bank spokesperson said the lender prohibits political and religious discrimination, and added, "Years of operating in a regulatory environment that often second-guessed decisions contributed to a culture of caution across the banking industry. That system needs fixing."
Trump has also accused other lenders, including Bank of America, the country's second-biggest lender by assets, of debanking him in early 2025. A Bank of America spokesperson did not immediately respond to a request for comment on the new report. The bank has previously said it does not comment on client matters and would welcome clearer rules from bank regulators on how to conduct its activities.
(Reporting by Pete Schroeder in Washington and Manya Saini in Bengaluru; Editing by Tasim Zahid and Rod Nickel)
