Executive Letter: President Trump’s Executive Order on Debanking

By Rose Oswald Poels

Earlier in August, President Trump issued Executive Order 14331 called “Guaranteeing Fair Banking For All Americans.” Among other identified purposes, the Order states that: “Bank regulators have used supervisory scrutiny and other influence over regulated banks to direct or otherwise encourage politicized or unlawful debanking activities.”

The Order defines “politicized or unlawful de-banking” as any act by a financial institution to directly or indirectly restrict access to, or modify the conditions of, accounts, loans, or other banking services on the basis of a customer’s political or religious beliefs, or based on lawful business activities disfavored by the institution for political reasons.

Fair lending and related laws have existed for decades, and bankers have followed those laws throughout time. As a result, my initial view of the Order was that it is codifying or clarifying current law.

The order directs federal banking regulatory agencies to take various actions to implement intent. Many agencies, including FRB, OCC, and FDIC, have taken initial steps with their recent removal of reputational risk from supervisory expectations.

Additionally, the SBA sent a letter last week to lenders of actions to be taken by early December. Banks must review past and current policies that could be interpreted as encouraging politicized or unlawful de-banking and prepare a compliance report by January 5, 2026. Lenders failing to comply may risk punitive measures and lose good standing with the SBA.

These recent developments have once again inspired national attention around debanking and important questions about how they intersect with existing fair lending and other banking laws. I’ve fielded questions and concerns from our members about how these changes will affect daily bank operations, compliance practices, and relationships with customers.

WBA is committed to ensuring our members have the most current information and clarity. I invite you to attend our complimentary live webinar this Thursday, September 4, from 9:00 to 10:00 am CT. I will be joined by Peter Wilder, attorney with Godfrey & Kahn, as we review the executive order, SBA directives, and the current legal framework that governs fair lending.

This webinar is held specifically to support WBA bank members and will not be recorded in order to allow for candid discussions. We encourage you to bring questions

and participate in the Q&A session.

Registration is free but required. Please register one attendee per planned webinar connection to help us ensure sufficient capacity.

I look forward to speaking with you all on Thursday as we break down what these changes mean for your bank and your customers