Jerome Powell Commits To Addressing Debanking Concerns: 'Regulation Leads Things To Happen'

Federal Reserve Chair Jerome Powell said it was timed to look at the possibility of debanking during a Congressional hearing on Tuesday.

Debanking is a term used to describe the alleged prevention of certain individuals and entities from accessing banking services.

Sen. Tim Scott (R-S.C.) brought up the issue as Powell testified in his semiannual report before the Senate Banking, Housing and Urban Affairs Committee.

Congressional Republicans have been looking into alleged discrimination by banks against conservatives after President Donald Trump called out the heads of two major banks over the issue.

"I hope you start opening your bank to conservatives because many conservatives complain that the banks are not allowing them to do business within the bank and that included a place called Bank of America," Trump said last month during a video address to the World Economic Forum in Davos last month.

Powell told Scott on Tuesday that he was committed to studying the issue.

"It worth taking a fresh look frankly on debanking," Powell said. "We don't intentionally do these things but sometimes regulation leads things to happen and we need to be working on that."

Members of the cryptocurrency community have complained that the Biden administration had a regulatory approach that hurt their ability to bank.

Some conservative groups have complained that their bank accounts were suddenly closed. Banks have responded that the groups were carrying out activities that put the banks in legal jeopardy.