OCC Proposal Would Ban Banks From Denying Services

OCC Proposal Would Ban Banks From Denying Services

OCC Proposal Would Ban Banks From Denying Services

Under the recent proposal by the Office of the Comptroller of the Currency (OCC), banks would no more be able to refuse to lend to certain industry categories. Let’s reveal more about the proposal and see why eMerchantBroker can be the best helping hand for merchants seeking access to working capital and payment processing services.  

eMerchantBroker & OCC Proposal

The recent rulemaking proposal by the Office of the Comptroller of the Currency would put a ban on banks refusing to deliver financial services to certain industries. 

If finalized, the Proposal would refer to national banks and federal savings associations that don’t provide financial services to industries that aren’t associated with any illegal business activities. The OCC says the Proposal aims to increase fairness in providing financial services to businesses. 

Are you engaged in a high risk industry and have difficulty getting access to the necessary merchant services for your business? This can’t be an issue if you apply to a reputable payment specialist like Pinwheel Pay. This is how you can be sure to enjoy the fastest access to the safest and most competitive merchant services in the U.S. 

What to Expect From the Proposed Rule by the OCC

The above-mentioned rule proposed in November would bar banks with over $100 billion in assets from refusing to provide services such as lending and payment processing to entire industry categories as long as merchants meet the risk assessment requirements. 

More specifically, after the adoption of the Proposal, banks would evaluate merchants’ credit quality based on the business lines and products merchants offer. This Proposal would be beneficial for high-risk industries. 

E.g., 5 of the 6 biggest U.S. banks, including Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley, and Wells Fargo & Co., have pledged over the last year to stop providing finances to new drilling and exploration projects in the Arctic. So, now, the situation could change for a range of businesses. 

As you see, under the Office of the Comptroller of the Currency (OCC) Proposal, large U.S. banks would stop denying to provide financial services to entire categories of lawful businesses. The Proposal followed the complaints associated with the oil-and-gas industry that big lenders had unfairly refused to provide finances for. 

Author Bio: Content crafter Alex Wilmont has been active in the payments industry for over 15 years. He lives simply, gives generously and loves his 2 dogs. His mission is to enhance and innovate the fintech industry for years to come.

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