US Banking Regulator Flags Unfair Customer Restrictions at Major Banks

The US Office of the Comptroller of the Currency (OCC) has found that nine of the country’s largest banks-maintained policies that could restrict access to financial services based on political, religious or other subjective considerations rather than objective financial risks. The report, released ahead of the midterm elections, did not announce any penalties but indicated that further policy changes may be considered.

The review, initiated in September 2025, found that concerns about public opinion and reputational risks had influenced some banking decisions. The OCC highlighted the lack of clear, measurable and risk-based criteria for evaluating certain customer relationships.

Banks have denied discriminating against customers on political or religious grounds, arguing that regulatory uncertainty has made them cautious about serving certain industries, including fossil fuels, firearms and cryptocurrency. The findings follow a broader regulatory push to reconsider the use of reputational risk in banking decisions.

The report underscores the importance of transparent, consistent and risk-based customer assessment policies, while highlighting the ongoing challenge of balancing fair access to financial services with regulatory compliance and risk management.