Federal regulators have released preliminary findings indicating that several of America’s largest banks used internal policies to restrict access for lawful customers — a development that places the nation’s financial giants under renewed scrutiny for practices that may have distorted access to capital and economic participation across key sectors.
OCC Releases Initial Review on Debanking Behaviors
The Office of the Comptroller of the Currency (OCC) published early results of its review on December 10, detailing how major institutions handled decisions to deny banking services. The goal of the assessment, the agency said, is to determine whether banks limited access based on political or religious views, or due to involvement in legal business activities.
“Although our work is ongoing, the OCC today is providing transparency into harmful bank account denial actions directed at lawful customers and businesses of the nation’s largest banks to ensure public awareness and deter these harmful and unfair activities,” the announcement stated.
Between 2020 and 2023, all nine banks examined — JPMorgan Chase, Bank of America, Citibank, Wells Fargo, U.S. Bank, Capital One, PNC, TD Bank and BMO — employed policies that created improper distinctions among customers by either restricting access or subjecting them to heightened reviews. At least one institution imposed limits on entire industries it deemed incompatible with its “values,” affecting sectors such as oil and gas exploration, coal mining, firearms, private prisons, tobacco, vaping products, adult entertainment and digital assets.
Regulators Push Back on “Weaponizing Finance”
Comptroller Jonathan V. Gould underscored the seriousness of the findings, stating: “The OCC is committed to ending efforts — whether by regulators or banks — to weaponize finance.” He added that it was “unfortunate that the nation’s largest banks thought these harmful debanking policies were an appropriate use of their government charter and market power.”
The review also found inconsistencies between public statements and internal practices. Some banks publicly promoted “values-based” exclusions while simultaneously denying that they engaged in debanking — a discrepancy that prompted further examination of how internal guidelines were applied.
The OCC reported that many of the restrictions operated through enhanced due-diligence channels that significantly delayed or outright blocked account openings or transaction approvals for lawful businesses. Thousands of customer complaints alleging political and religious discrimination remain under analysis, with regulators evaluating how these practices may have constrained capital access, influenced industry growth, and shaped broader economic conditions.
As the review continues, the OCC plans to issue additional updates and reinforce standards designed to prevent discriminatory conduct within the banking system.
