Guaranteeing Fair Banking for All Americans
1. Purpose
Executive Order 14331 aims to ensure fair access to banking services, preventing financial institutions from denying services based on individuals' political or religious beliefs or lawful business activities.
2. Key Actions And Directives
- Removal of Reputation Risk Concepts: Federal banking regulators must eliminate references to reputation risk from guidance documents that may lead to politicized or unlawful debanking.
- Objective Analysis Requirement: Banking decisions should be made based on individualized, objective, and risk-based analyses, disregarding protected beliefs or political views.
- Notice to Financial Institutions from SBA: The SBA will alert financial institutions it backs to identify and reinstate any clients denied services due to politicized or unlawful debanking within 60 days.
- Reinstatement Efforts by Financial Institutions: Financial institutions must attempt to identify and reinstate denied clients and notify them of this reinstatement within 120 days.
- Strategy Development by Secretary of the Treasury: The Secretary of the Treasury must create a strategy to combat unlawful debanking activities within 180 days.
- Review of Financial Institutions: Federal banking regulators must review financial institutions for policies that contribute to politicized debanking within 120 days.
3. Important Points
- Protection Against Unfair Practices: The order addresses unacceptable practices by financial institutions that discriminate based on political or religious beliefs.
- Time-Bound Actions: The executive order sets specific timelines for federal regulators and the SBA to implement corrective measures.
- Guidelines for Fair Decision Making: The emphasis on objective and risk-based analyses aims to safeguard fair treatment under banking regulations.
- Limit on Individual Rights Claims: The order specifies that it does not create enforceable individual rights against the U.S. government.
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