Oklahoma is one of the top states in the nation to do business. This is because, from energy to agriculture to small business, lawmakers have prioritized reducing regulatory burdens and allowing economic activity to thrive. As the state considers how to ensure fair access to banking, that same philosophy should guide our approach.
House Bill 3172, which is currently being considered by the Oklahoma Legislature, looks to create a new, statewide framework to prohibit debanking, the closure or limiting of a bank account for any discriminatory reasons, such as politics or religion.
The mission is right — no one should be turned away from a bank because of their political leanings — but the means to achieve it are wrong.
For more than a decade, politicized federal regulators have pressured banks to close accounts for certain people and industries. Recognizing the need to fix this, President Trump issued an executive order to address the dual causes of debanking: bad federal policy and politically motivated bureaucrats. Federal agencies and Congress have already begun implementing the directive.
Oklahomans should follow the President and look to his Administration and Congress to address this. Trying to enact legislation like HB 3172 would contradict this important progress set in motion by President Trump.
Because, while Oklahoma legislators have the right goal in mind — to ensure lawful citizens and businesses can continue to rely on bank accounts to receive wages and manage their finances — there are consequences to state legislation like this.
The varying laws and regulations between different states increase compliance costs and operational complexity. This creates confusion, uncertainty and, at the end of the day, higher costs for consumers or, especially for smaller banks, accelerated branch closures or reduced access to credit for the communities that depend on it. Local banks such as The First National Bank and Trust Co. have already had to close physical branches in recent years and further compliance costs could accelerate these closures.
Several states are taking the prudent approach. State lawmakers in Texas and Louisiana, for example, have decided to support efforts by President Trump and Congress to address debanking concerns where they originate: within the federal regulatory framework that governs the nation’s financial system.
Oklahoma isn’t one to add more red tape, regardless of sector, because we know it harms businesses and the people they serve. It’s bad for competition, access, affordability and the same is true for an issue as complex as financial regulation. Voters in general agree that the strongest solution is one that works across all fifty states, not fifty different ones — with recent polling showing that the majority of voters on both sides of the aisle support President Trump’s executive order.
At the Oklahoma Rural Association (ORA), our mission is for rural Oklahoma to be a place where people want to come, stay and grow their businesses. ORA has put a great deal of focus on the fragile access to banking for rural areas as a result, but legislation like HB 3172 jeopardizes that.
To keep Oklahoma competitive and to protect our rural communities, lawmakers should look to Washington to enact a federal fair access standard, rather than moving one forward at the state level this session in Oklahoma City.
About the author: Monica Collison is the Executive Director of the Oklahoma Rural Association.