OCC puts fair access rule on hold as agency awaits new comptroller

The Office of the Comptroller of the Currency (OCC) has announced that it put a hold on formally publishing a rule that seeks to push banks to provide fairer access to services.

According to the Thursday announcement, pausing publication of the rule will allow the next Comptroller of the Currency to review it and take into consideration any public comments the OCC has received. Recent reports suggest that former Treasury Department official Michael Barr, who worked in the Clinton and Obama administrations, may be nominated to lead the U.S. banking regulator.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

The agency went public with the rule in November 2020. According to the US banking regulator's statement at the time, the OCC's stated position was that "banks should provide access to services, capital, and credit based on the risk assessment of individual customers, rather than broad-based decisions affecting whole categories or classes of customers." 

The primary goal of the proposal is to stop banks from limiting the access customers or businesses have to banking services. Under the new rule, banks would be required to make their services available to everyone in the communities they serve. However, they can still choose to deny specific services based on a customer's creditworthiness, ability to pay, and other factors. 

TAGS
OCC

About Author

Saniya More (pronounced: Saan-ya Mo-ray) is a quadrilingual journalist at The Block. She got her master’s degree from the Columbia University Graduate School of Journalism and did her undergraduate degree at the S.I. Newhouse School of Public Communications, Syracuse University. Her work has appeared in CBS News, Bangkok Post, Thai Enquirer, Globalists, Byline Times and other publications. When she’s not chasing a story, you will most likely find her biking, tweeting, taking photos or creating Spotify playlists for every occasion.