meta_id 3403409

On August 12, 2025, Mike Hill, Superintendent of Banks at the Alabama State Banking Department, issued guidance to chief executive officers of all state-chartered banks regarding debanking practices and customer access to financial services. The Department defined debanking as "the practice of financial institutions engaging in unacceptable practices to restrict law-abiding individuals' and businesses' access to financial services on the basis of political or religious beliefs or lawful business activities." The Department stated it has not observed such practices among Alabama state-chartered banks but emphasised that decisions about which customers banks should serve must be based solely on sound business reasoning consistent with existing federal laws and regulations, including anti-money laundering and Bank Secrecy Act compliance requirements. The Department aligned its position with Governor Kay Ivey's Executive Order No. 743, titled "Promoting Fair and Lawful Access to Financial Services," and referenced Title 5 of the Code of Alabama, which mandates that banks consider the "convenience and needs" of lawfully operating customers. The Department specified that sound business reasoning includes safety and soundness considerations such as overall concentrations of risk, including funding and credit risks, as well as individual risk characteristics of particular customers. Regarding emerging technologies such as stablecoins and other fintech or cryptocurrency-related activities, the Department requested that banks notify it when first engaging in such activities, though advance approval is not required. The Department stated that advance notice will allow it to appropriately staff examinations and provide relevant expertise. Effective September 1, 2026, all Alabama state-chartered banks must comply with this guidance. The Department indicated it will inquire during future supervisory activities regarding banks' policies and practices concerning customer access to services.