Guaranteeing Fair Banking for All Americans
Headline: Federal Banking Regulators Ordered to End Politicized Debanking Practices
What it does: Federal banking regulators must remove 'reputation risk' guidance and review institutions to stop politicized or unlawful debanking.
- Requires banks to identify and reinstate customers denied for beliefs or lawful businesses.
- Gives regulators authority to review, fine, or discipline institutions engaging in debanking.
- SBA must notify lenders and push to restore services for harmed small businesses.
Summary
This order prohibits banks and other financial firms from denying accounts or services because of customers' political views, religious beliefs, or lawful business activities. It directs federal banking regulators to remove references to "reputation risk" in examiner guidance that could lead to politicized or unlawful debanking.
The Small Business Administration must notify lenders and require efforts to identify and reinstate harmed customers. The Treasury must develop a strategy, and regulators must review and, where authorized, discipline institutions that engaged in unlawful debanking to protect access to financial services.
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