OCC Review Finds Debanking at All Nine Top US Banks

The Office of the Comptroller of the Currency has found that all nine of the largest banks in the United States closed customer accounts in a practice widely known as debanking, FinTech Global reported.

Debanking generally refers to the closure or denial of accounts for reasons other than standard credit or commercial risk, and it has become a prominent subject of debate among policymakers, consumer advocates and lenders. Losing access to a bank account can leave households and companies without a straightforward way to hold deposits, make payments or borrow.

The comptroller's office supervises national banks and federal savings associations, giving it a direct view of how the largest institutions treat their customers. A finding that reaches every one of the nine biggest lenders suggests the practice is not confined to a handful of outliers but is embedded across the upper tier of the US banking system.

Questions remain over which customers were affected and what, if anything, supervisors will require of the lenders. Even so, the conclusion adds weight to calls for clearer standards on when banks may exit relationships, and it is likely to keep the issue before supervisors and lawmakers in the months ahead.