Trump's debanking order could create headaches for banks, sources say

Source: Reuters

U.S. President Donald Trump's executive order requiring banks not to discriminate against clients on political or religious grounds could create uncertainty and administrative headaches for the industry, sources said.

Trump signed an executive order on Thursday directing the Treasury Department and bank regulators to ensure lenders do not have policies in place that deny services to customers based on political or religious beliefs, a practice known as "debanking." Any wrongdoing uncovered could result in fines, disciplinary measures, and even referrals to the Justice Department.

The order came days after Trump accused JPMorgan Chase and Bank of America last week of debanking him, and alleged that lenders discriminate against conservatives. Large banks have denied rejecting clients on political grounds, and instead blamed unclear rules for some of the account closures.

Banks have earlier said that certain decisions to close accounts were based on rules around reputational risk, a criterion that has been banned by Trump's order.

Read more: https://www.reuters.com/legal/transactional/trumps-debanking-order-could-create-headaches-banks-sources-say-2025-08-14/