Federal Deposit Insurance Corporation plans rulemaking to restrict reputational-risk based supervision and politicized debanking

The Federal Deposit Insurance Corporation published a statement from Acting Chairman Travis Hill supporting President Trump’s Executive Order titled “Guaranteeing Fair Banking For All Americans” and outlining planned steps to address “politicized or unlawful debanking” of law-abiding customers. A forthcoming FDIC rulemaking would prohibit examiners from criticizing institutions on the basis of reputational risk and from directing or encouraging institutions to close accounts based on customers’ political, social, religious, or other views. Consistent with the Executive Order, the FDIC also plans to review whether FDIC-supervised institutions have engaged in politicized or unlawful debanking and to work with interagency partners to ensure access to bank accounts for law-abiding individuals and businesses.