WASHINGTON—A preliminary federal review has found that the nation’s nine largest banks previously imposed improper restrictions on certain lawful but controversial industries, a practice widely described as “debanking,” according to a report released Wednesday by the Office of the Comptroller of the Currency (OCC), Reuters reported.
The report did not provide specific examples, but said the firms examined were JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, U.S. Bank, Capital One, PNC, TD Bank, and BMO Bank, Reuters said.
The findings are part of a broader White House-commissioned probe into whether banks denied services based on political or religious considerations.
The OCC launched its review after President Donald Trump in August ordered regulators to examine any current or past policies that could have effectively barred customers on such grounds. While the agency did not detail specific misconduct, it said early results show the banks maintained policies between 2020 and 2023 that either refused services to select industries or subjected them to heightened scrutiny that exceeded actual financial risk, Reuters said.
Comptroller of the Currency Jonathan Gould criticized the institutions for adopting what he called “harmful debanking policies,” noting that some banks publicly announced such practices even as they later denied engaging in them. He said the agency intends to ensure those practices do not persist and will hold institutions accountable.
The OCC said its investigation remains ongoing and could lead to referrals to the Justice Department. Regulators are also reviewing thousands of consumer complaints to determine whether banks declined services based on political or religious beliefs, Reuters said.