By Nupur Anand
NEW YORK (Reuters) -U.S. banks are petitioning the Workplace of the Comptroller of the Foreign money to hunt nationwide requirements for offering banking companies that might override state-imposed guidelines, three sources accustomed to the matter mentioned.
Massive banks, specifically, are lobbying for uniform U.S. rules outlining how they will make loans, challenge bonds or present funding banking companies, or assess anti-money laundering dangers whereas curbing state powers over their operations, mentioned the sources, who declined to be recognized whereas discussing non-public talks.
The renewed push for nationwide requirements, which is being reported by Reuters for the primary time, is a part of a sweeping effort by the banking trade to lock in additional favorable guidelines below U.S. President Donald Trump’s administration.
The adjustments would make it simpler for lenders to function, the sources mentioned. They might additionally curtail states’ energy to disrupt banks’ operations with guidelines on so-called “debanking,” a observe by which banks allegedly deny companies to clients primarily based on political or non secular beliefs.
Particular person states have beforehand punished banks and barred them from doing enterprise primarily based on lenders’ insurance policies on weapons, local weather change, variety and different social points.
The talk round nationwide requirements got here into focus in a lawsuit involving Financial institution of America. In a 2024 choice, the U.S. Supreme Court docket dominated that federal legislation takes priority for nationwide banks over state legal guidelines, an idea often known as preemption. Massive banks have targeted on lobbying to defend themselves in opposition to accusations of debanking this 12 months, citing unclear guidelines. Trump handed an government order on debanking this month that goals to make the foundations extra uniform.
Emboldened lenders are actually targeted on preemption after getting regulators to water down stress exams and capital necessities, one of many sources mentioned.
Banks plan to ramp up lobbying efforts after assembly with the OCC earlier this 12 months to press the problem, the three sources mentioned.
The OCC declined to remark.
“We strongly help nationwide preemption and imagine federal honest entry laws or regulation can be a prudent transfer to handle account closures in a constant means throughout all states,” the Financial institution Coverage Institute, an trade affiliation, mentioned in a press release.
The American Bankers Affiliation beforehand has mentioned that an growing variety of states are contemplating legal guidelines that disregard the prevailing federal legal guidelines. The proposals would give state regulators authority over primary operations of a nationwide financial institution, together with selections about deposit taking, lending, and danger administration, which the ABA has opposed.
