Banks across the United States are now facing extensive federal demands to investigate their own practices regarding account closures and service denials. The focus of this inquiry is to determine whether these actions were based on customers’ political or religious beliefs, a practice some have termed “debanking.”

This initiative is part of President Trump’s efforts to address alleged financial discrimination by major lending institutions. The Federal Deposit Insurance Corporation is expected to issue directives to large banks in the coming days, requesting records that may span several years. Meanwhile, the Office of the Comptroller of the Currency has already engaged with the nation’s nine largest banks on this matter.

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The Small Business Administration has reportedly contacted over 5,000 banks and lenders, instructing them to review past account closures and loan rejections for potential political or religious bias. These institutions have been directed to offer customers the option of reopening accounts and to report their findings by early next year.

Banks are now tasked with scrutinizing old records, consumer complaints, and rejected loan applications to comply with this new mandate. Some financial institutions have expressed uncertainty about the extent of their reporting obligations, citing vague guidelines.

President Trump claimed discrimination by major banks against him and his family after leaving office in 2021. It’s important to note that JPMorgan Chase, Capital One, and Bank of America have denied these allegations. Banks maintain that account closures are driven by financial and legal risk considerations, not political motivations.

The evidence suggests that this federal inquiry is particularly challenging for regional and community banks, which typically have fewer resources to manage complex regulatory demands. As the December deadline approaches, many institutions are preparing for a potentially costly and complicated compliance process.