U.S. Sen. Kevin Cramer (R-ND) financial institutions introduced legislation prohibiting financial institutions from refusing or limiting services to certain industries.
The bill, the Fair Access to Banking Act, would penalize banks for not doing certain businesses or industries. Instead, they would be required to base their judgments and decisions on impartial, individualized risk-based analysis developed through empirical data and evaluated under quantifiable standards.
Cramer cited some examples, such as banks withholding financing for coal plants or credit supporting oil and gas drilling in the Arctic National Wildlife Refuge. Additionally, they would not be allowed to have restrictions on working with certain munitions and firearms companies. Cramer cited the examples of banks including “ammunitions, firearms, or firearm parts” in the prohibited payments section of its corporate policy manual and payment services denying their services for transactions involving firearms or ammunition.
“There is no place in our society for discrimination, and big banks and financial institutions are no exception. The Biden administration and their liberal base are weaponizing the financial system to defund, debank, or discredit industries they do not like,” Cramer said. “It is fundamentally unfair. Our bill imposes serious consequences for discriminatory decisions or de facto bans of legal industries.”
Specifically, the bill would penalize banks and credit unions with over $10 billion in total consolidated assets, or their subsidiaries, if they refuse to do business with any legally-compliant person who meets the described criteria. Also, it would prevent payment card networks from discriminating against any legally-compliant person because of political or reputational considerations. Further, it would codify the core requirements of the Trump Administration’s Fair Access Final Rule.
In addition, it would require banks to provide written justification for why they are denying a person financial services. Providers who fail to comply would be disqualified from using discount window lending programs, have status as an insured depository institution or insured credit union terminated, or pay a penalty of up to $10,000 per violation.
The bill is co-sponsored by 36 Republican senators.
It is endorsed by the National Shooting Sports Foundation (NSSF), National Rifle Association (NRA), Independent Petroleum Association of America (IPAA), National Mining Association (NMA), National Association of Wholesaler-Distributors, and Day 1 Alliance.