U.S. OCC Proposes Rules to Limit Political Bias in Bank Account Closures

According to OCC head Jonathan Gould, revised standards will remove 'reputation risk' references and compel major banks to disclose de-banking practices, aiming to prevent discrimination based on political or religious beliefs.

191d ago

Summary

The U.S. Office of the Comptroller of the Currency (OCC) announced plans to revise its regulatory standards by eliminating references to 'reputation risk' and requiring nine large regulated banks to disclose their account-closure practices, also known as de-banking. OCC head Jonathan Gould emphasized that the policy seeks to ensure customers are not denied banking services due to political or religious beliefs. The update follows a presidential executive order directing regulators to address such concerns.

Terms & Concepts

Office of the Comptroller of the Currency (OCC): A U.S. federal agency that regulates and supervises national banks and federal savings associations.
De-banking: The practice of financial institutions closing or restricting customer accounts, sometimes raising concerns about bias or unfair treatment.
Reputation Risk: A regulatory concept referring to potential harm to a financial institution’s reputation, previously used in risk assessments but now slated for removal in OCC standards.