Following President Trump’s Directive, Federal Regulatory Agencies Take Steps to Ensure Fair Access

Last week, the Federal Reserve announced new supervisory guidance from Vice Chair Michelle Bowman, marking the continued progress toward ensuring banking regulators evaluate objective, material financial risks rather than subjective, or ideological measures in their supervisory approach to banks. The move comes as agencies continue to follow through on President Trump’s executive order (EO) to ensure fair access to banking.

The president’s order defines “politicized or unlawful debanking” and directs agencies to review past practices and revise guidance that relies on “reputation risk.” It also sets a series of deadlines for frequent reviews, updated rulemaking and removal of guidance that could enable discrimination based on ideology or lawful business conduct.

Since the EO, multiple federal agencies responsible for regulating the financial sector have already taken meaningful steps.

How Regulators Are Responding

Federal Reserve: Michelle Bowman’s remarks and the Fed’s updated guidance stress that decisions should be grounded in actual financial risk. Bowman’s signal is clear: when it comes to regulators’ focus, put less weight on reputational concerns, more on objective analysis.

U.S. Treasury: Secretary Scott Bessent directed theTreasury to develop a broader strategy to address overreach over financial institutions. Officials have signaled broader regulatory reforms that track with the EO’s directives.

Office of the Comptroller of the Currency (OCC): The OCC released a statement in support of the EO and issued a notice of proposed rulemaking that guides banks on compliance efforts to remove politically-driven considerations from supervision.

Federal Deposit Insurance Corporation (FDIC): Acting Chairman Travis Hill backed the EO and announced plans for a rule that bars examiners from using reputational risk to over scrutinize lawful customers. The FDIC and OCC have already issued a joint proposal reflecting that commitment.

Small Business Administration (SBA): SBA Administrator Kelly Loeffler directed its regulators to end politicized or unlawful debanking practices and warned that failure to comply could affect delegated authority in SBA programs. The agency has also emphasized that it will ensure customers are treated consistently regardless of their political affiliations.

Financial Crimes Enforcement Network (FinCEN) & National Credit Union Administration (NCUA): FinCEN and NCUA fall under the EO’s umbrella, with each agency releasing updated guidance around supervisory practices. Both agencies have begun revising regulator expectations to clarify that institutions should base decisions on legitimate risk and compliance rather than ideological standards.

While supervisory reform has been in the works for years, the recent activity from the Federal Reserve, OCC, FDIC, SBA and others signify a greater prioritization on these issues since President Trump’s executive order. While the work is still early, federal leadership and legislation codified by Congress are essential to keep fair access moving forward permanently.

Keeping the focus on clarity and consistent standards will matter most as future policies take shape.

Read AFFM’s latest blog HERE on the steps Congress is taking to ensure fair access in banking.