Committee advances Fair Banking Act targeting very large institutions

House Bill 3172, introduced in committee as the "Fair Banking Act," would prohibit very large financial institutions from taking adverse actions against individuals or entities engaged in lawful economic activity when the action is based on political or religious grounds, and would require institutions to provide an explanation within 30 days upon request.

The bill’s sponsor told members the measure applies only to institutions with more than $100,000,000,000 in assets, saying the largest banks headquartered or chartered in Oklahoma are below that threshold, so the law would apply primarily to national banks. "Basically, it says they shall not take any adverse action when parties are engaged in lawful economic activity... taking that action based on some political or religious issue," the sponsor said.

Members asked whether the measure would affect Oklahoma-chartered banks and whether it mirrored a presidential executive order; the author said the bill is essentially similar in scope to an executive order signed by the president but had not been reviewed line-by-line as executive orders and statutes differ in legal force.

The committee moved and recorded a vote reported informally as 6-2 to advance the bill and referred it for further consideration. The record shows committee members sought clarity about exceptions and the definition of "insufficient answer" for required bank explanations; staff follow-up was requested.

The bill will proceed for additional review and drafting clarifications before any final floor vote.