Trump institutes crackdown on 'debanking,' a matter of personal annoyance for him
President Donald Trump signed an executive order on August 7, 2025, titled "Guaranteeing Fair Banking for All Americans." The order aims to combat "politicized or unlawful debanking," a practice where financial institutions deny or restrict services based on customers' political views, religious beliefs, or lawful business activities disfavored for political reasons.
The executive order instructs federal banking regulators, including the Consumer Financial Protection Bureau (CFPB), Federal Reserve Board, Office of the Comptroller of the Currency (OCC), National Credit Union Administration (NCUA), and Federal Deposit Insurance Corporation (FDIC), to conduct reviews and identify institutions with past or current policies encouraging such practices. The regulators have 120 days to complete these reviews and are empowered to take remedial actions such as fines or consent decrees.
Additionally, the order instructs the Small Business Administration (SBA) to require financial institutions under its jurisdiction to attempt reinstatement of clients who were unlawfully denied banking services. This order builds on regulatory changes earlier in 2025, including the Federal Reserve stopping the use of "reputational risk" as an examination factor and the OCC's removal of reputational risk considerations, which had enabled politicized debanking practices.
The issue of banks denying services to certain customers gained traction when crypto companies, major backers of Trump's presidential run, began complaining about being unable to work with banks. Some high-profile examples of so-called debanking, including the Trump family's lawsuit against Capital One, remain unproven.
President Trump, in a CNBC interview, claimed that JPMorgan Chase and Bank of America declined over $1 billion in cash deposits from the Trump Organization after his first term. Trump reportedly made personal appeals to the CEOs of both banks regarding the denied deposits, but spokespeople for the banks declined to comment on the allegations. Major banks have insisted they are not to blame for closed accounts, citing regulations that require them to take a hard line against potential customers who transact disproportionately in cash or operate gun-related businesses, among other categories.
The White House stated that such practices erode public trust in banking institutions and regulators, harm livelihoods, freeze payrolls, and impose significant financial burdens on law-abiding Americans. The order raises the possibility of federal prosecutions of banks for past debanking practices. The issue of debanking has become more mainstream, with right-leaning groups and some liberals accusing lenders of politically motivated discrimination.
The order is expected to lead to comprehensive strategies to protect fair banking access for all Americans, with enforcement measures expected to follow within months. The order complements prior federal and state anti-debanking efforts and revives focus on the "fair access" concept that the OCC had advanced near the end of the previous Trump administration but which was halted by the Biden administration.
[1] White House, "Executive Order on Guaranteeing Fair Banking for All Americans," August 7, 2025. [2] Federal Reserve, "Federal Reserve Announces Changes to Banking Examination Process," June 1, 2025. [3] Office of the Comptroller of the Currency, "OCC Announces Changes to Banking Examination Process," March 1, 2025. [4] Small Business Administration, "SBA Issues Guidance on Reinstatement of Unlawfully Denied Banking Services," August 10, 2025. [5] Senate Banking Committee, "Senate Republicans Introduce Bill to Combat Politicized Debanking," May 1, 2025.
Federally mandated reviews are underway to identify financial institutions with past or current policies that may have encouraged the practice of politicized or unlawful debanking, as instructed by the executive order titled "Guaranteeing Fair Banking for All Americans." The Small Business Administration is also required to attempt reinstatement of clients unfairly denied banking services under their jurisdiction.
The regulators, including the Consumer Financial Protection Bureau, Federal Reserve Board, Office of the Comptroller of the Currency, National Credit Union Administration, and Federal Deposit Insurance Corporation, have been given 120 days to complete these reviews and are empowered to take remedial actions such as fines or consent decrees if needed.
