US President Donald Trump’s executive order requiring banks to avoid discriminating against clients based on political or religious grounds could create uncertainty and administrative headaches for the industry. The order aims to prevent “debanking” – a practice where lenders deny services to customers based on their political or religious beliefs.
Banks have welcomed the order for its potential to streamline processes, but they also express concerns about how onerous it could be to comply with the order. Industry officials and experts are still unclear about the scope and zeal with which regulators will carry out Trump’s directions.
The order gave regulators 180 days to conduct their review. Regulators may review banks for improper policies and take remedial actions “as appropriate.” The Office of the Comptroller of the Currency (OCC) is currently reviewing banks for improper policies, while spokespeople for the Federal Reserve and the Federal Deposit Insurance Corporation declined to comment on how they plan to implement the order.
Banks face challenges in reviewing and potentially renewing client relationships over debanking. Industry executives say that regulators publishing rules on debanking may clarify questions about the executive order. Regulators are unlikely to hand out penalties for any historic account closures, but they could ask banks to disclose reasons for past debanking.
The US banking system emphasizes fair access to financial services, and banks must ensure that customers are not discriminated against based on their political or religious beliefs. The OCC has stated that “fair access to financial services is a fundamental principle of the U.S. banking system.”
Source: https://www.reuters.com/legal/transactional/trumps-debanking-order-could-create-headaches-banks-sources-say-2025-08-14