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Is a proposed banking regulation intended to force banks to lend to the oil industry?

Tuesday, December 8, 2020
By Laura Brickman
YES

A rule proposed by a federal banking regulator follows calls from Alaskan elected officials objecting to banks refusing to lend to new oil and gas operations in the Arctic. The supervisor, Acting Comptroller of the Currency Brian Brooks, said the rule would address “creeping politicization” among banks reluctant to lend to certain industries because of public pressure or their internal policies.

The rule calls for banks to make “products and services available to all customers in the community it serves.” Democratic Senators contend that regulators lack the legal authority to force banks to lend to specific Arctic drilling projects, calling the proposal a “highly inappropriate” use of official tools.

The supervisory agency plans to implement the rule before the end of President Trump's current term, but the incoming administration could fire Brooks and overturn the rule.

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