Banks cannot blacklist entire industries under the new OCC rule

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WASHINGTON – Banks would be barred from refusing to provide or provide other services to entire categories of legal businesses under a rule that a major banking regulator completed on Thursday, its last day before resigning. The regulator, Brian Brooks, was responding in part to complaints from the oil and gas industry that large lenders had unfairly denied him funding. Completed just 10 days after its formal comment period ended – unusually fast in the slow world of federal rule-writing – the Office of the Comptroller of the Currency’s move may be challenged by banks, which say it micromanages decisions. credit.

Brooks, who will step down as Acting Comptroller of Currency Thursday afternoon in the final days of the Trump administration, said in an interview that the rule revolves around the same concept of loan nondiscrimination requirements. Banks can still deny services to individuals or businesses, but they must justify their decisions quantitatively and objectively, he said. “This is just a principle of non-discrimination,” he said. “If you are not going to serve someone for a service that you have chosen to offer others … then you have to do your homework and show why this person is dangerous.” An expanded version of this article appears on WSJ.com Popular WSJ.com Stories: