Us Congress House Bill HB987

Us Congress 2025-2026 Regular Session

• Introduced: 2/5/25
• Refer: 2/5/25

Caption

Fair Access to Banking Act

Impact

If enacted, this bill aims to revise significant aspects of banking law under the Federal Reserve Act and the Federal Deposit Insurance Act. It ensures that member banks and other covered financial institutions are held to standards requiring them to provide services to all compliant customers proportionally and fairly. The legislation will be particularly impactful for sectors that have faced previous discrimination under industry practices and policies, enhancing their ability to operate without financial prejudice and promoting equal access to banking services.

Summary

House Bill 987, titled the "Fair Access to Banking Act", aims to amend existing banking laws to ensure that financial service providers do not deny access to financial services based on subjective evaluations or discriminatory practices. This legislation arises from concerns regarding past government initiatives, such as Operation Choke Point, which pressured financial institutions to restrict services to lawful businesses based on political or reputational biases. The bill intends to establish criteria that promote fair treatment across various sectors of the economy, detailing that financial institutions can only deny services based on documented and quantified risk assessments rather than arbitrary categorizations.

Contention

One notable point of contention surrounding this bill is the balance between maintaining standard banking protocols and the desire to foster inclusiveness in financial access. Critics may argue that the bill imposes overly cautious regulations that could hinder the risk assessment capabilities of financial institutions, while supporters contend that these measures are necessary to prevent discrimination and ensure taxpayer-supported financial entities operate justly. Proponents emphasize that financial institutions should make decisions grounded in empirical, risk-based criteria, while opponents may express concern about the implications for banks' operations and the additional burdens placed on them regarding compliance and reporting.

Congress_id

119-HR-987

Policy_area

Finance and Financial Sector

Introduced_date

2025-02-05