Nine large banks engaged in so-called debanking, says US regulator

A US regulator said nine large lenders imposed policies that “denied, debanked and discriminated” against some customers and business, building on an initial finding after President Donald Trump called to rein in such activities. 

The Office of the Comptroller of the Currency found that between 2020 and September 2025 JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Wells Fargo & Co., U.S. Bancorp, Capital One Financial Corp., PNC Financial Services Group Inc., Toronto-Dominion Bank and Bank of Montreal maintained policies that restricted access to banking services or required the customers to go through escalated reviews and approvals.

 

JPMorgan said their policies prohibit discrimination based on political or religious views, adding the report discusses “a limited number of historical interactions” and the bank has “improved the way we do business.”

 

 

“We agree with the administration on a broader point: 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,” JPMorgan said in a statement. 

 

A representative for Wells Fargo declined to comment. Spokespeople for the other firms didn’t immediately respond to requests for comment. 

 

The OCC’s conclusion comes after Trump signed an executive order directing regulators to remove reputation-risk standards and identify financial institutions that engaged in so-called debanking. The regulator released an initial report identifying the nine lenders late last year. 

 

Trump has also said banks discriminated against him in the past, alleging last year that JPMorgan and Bank of America rejected his business. Both banks have denied rejecting business on ideological grounds. 

 

The regulator said in the new report released Wednesday that broad reputation risk policies disadvantaged certain Americans based on their political, religious or social views. The agency also found that banks maintained policies restricting some industry sectors’ access to financial services, including those involved in oil and gas, coal mining, firearms or tobacco-related businesses.

 

“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,” OCC head Jonathan Gould said in a statement. 

 

The Consumer Financial Protection Bureau also said Wednesday it would “fully investigate” whether the institutions featured in the OCC’s report have complied with federal consumer financial laws and take “appropriate action.”

 

Critics have argued that some bank examiners pushed lenders to stop doing business with politically sensitive clients, even when they posed no risk to the bank’s safety and soundness, but consumer advocates say there is little evidence to show the issue is widespread.