U.S. banks face increased legal scrutiny for denying services to legal but politically disfavored industries. An August 2025 executive order requires financial institutions to base decisions on individualized financial risk. Banks can no longer deny services based on political or religious beliefs.
New OCC and FDIC rules effective June 2026 eliminate reputational risk as a valid basis for service denial. An OCC investigation found the nine largest U.S. banks restricted services for firearms and fossil fuel sectors. These institutions include JPMorgan Chase, Bank of America, and Wells Fargo.
A bank’s debanking record now directly impacts regulatory approvals for mergers. These practices also influence a bank’s Community Reinvestment Act (CRA) rating.