Federal Reserve Chairman Jerome Powell on Tuesday during a congressional hearing said the nation’s central bank felt compelled to address policies around “reputational risk,” noting that “debanking” is a “serious problem.”
The Fed Board said reputational risk would no longer be a part of its examination program while it supervises banks.
Conservatives, venture capitalists, and cryptocurrency companies have long complained about “debanking,” or losing access to one’s banking services due to the person or group’s commercial activity or political affiliation.
Rep. Bryan Steil (R-WI) during a House Financial Services Committee hearing, asked the Fed chairman why the Fed references reputational risk in its supervisory materials.
Powell remarked, “We’re hearing a lot of reports of debanking and that sort of thing. And over the
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