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OCC Makes 'Debanking' a Factor in CRA Ratings and Bank Licenses

The move follows President Trump's order directing regulators to crack down on politicized denials of banking services.

A man walks on Wall Street outside the New York Stock Exchange (NYSE) in New York City, U.S., April 7, 2025. REUTERS/Brendan McDermid/File Photo
BLOOMFIELD, CT - JANUARY 2: TaJan'e Thompson, associate banker, left, and Zach Carey, branch operations lead, right, assist customers at the new Chase branch at 417 Cottage Grove Rd. in Bloomfield, Conn., Thursday, January 2, 2025. (Dave Zajac/Connecticut Post via Getty Images)

Overview

  • An OCC bulletin says evidence of politicized or unlawful debanking will be weighed in licensing decisions and Community Reinvestment Act evaluations, affecting branch approvals, mergers and leadership changes.
  • The OCC requested information from the nine largest regulated banks as it assesses the scope of politicized account closures or restrictions.
  • The bulletin reminds banks to protect customer financial records and cautions against using voluntary Suspicious Activity Reports to bypass the Right to Financial Privacy Act.
  • The SBA instructed more than 5,000 SBA-backed lenders to cease politicized or unlawful debanking, identify and reinstate affected clients, and notify potential clients of renewed access.
  • SBA deadlines require remediation steps by December 5, 2025 and compliance reports by January 5, 2026, with potential punitive measures for noncompliance including loss of delegated authority, enhanced supervision and possible referral to the Attorney General.