BANKING FINANCIAL
U.S. regulator says banks denied services over political or religious views
A U.S. bank regulator says its review of nine major banks found evidence that, from 2020 to September 2025, some customers and lawful businesses were denied banking services or had accounts closed because of political or religious views and broad “reputation risk” policies.
A U.S. bank regulator says its review of nine major banks found evidence that, from 2020 to September 2025, some customers and lawful businesses were denied banking services or had accounts closed because of political or religious views and broad “reputation risk” policies.
What This is
- The Office of the Comptroller of the Currency reviewed account decisions at nine major national banks and found evidence that some customers were denied, restricted, or dropped for political or religious views.
- The review covered the period from 2020 through September 2025, drawing on nearly 100,000 complaints and large volumes of bank records and internal decisions.
- The OCC’s review covered banks, including JPMorgan Chase, Bank of America, TD Bank, and BMO Bank.
- The report said some decisions were influenced by broad “reputation risk” policies that lacked clear standards and objective, risk-based criteria.
- The OCC said these policies affected businesses and organizations in areas including fossil fuels, firearms, digital assets, abortion access, and LGBTQ-related issues.
- The report said the effects were not limited to one ideology and included groups across the political spectrum.
- The OCC report did not announce penalties, but the agency said it was considering further regulatory and supervisory changes.
Why This Matters
- Losing banking access can disrupt customers’ ability to receive income, pay bills, or run a business.
- Broad “reputation risk” rules can make it hard for customers to understand or challenge an account closure, which can erode trust in the banking system.
- When large banks avoid entire lawful industries, it can limit those businesses’ access to credit and payment services.
- The report may push regulators to demand clearer standards and documentation for denying services, which could change how banks balance compliance, politics, and public pressure.