• 2 days The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 13 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 1 day European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 4 days Demonising fossil fuels has caused major grid problem in Australia
  • 3 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 2 hours "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 8 days "And this is perhaps the most dangerous kind of government there can be."
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 5 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 330 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 7 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
Is A Recession Really The Next Big Risk For Oil?

Is A Recession Really The Next Big Risk For Oil?

Crude prices have fallen this…

The EV Revolution Is Transforming Rental Companies

The EV Revolution Is Transforming Rental Companies

Increasing demand for electric vehicles…

U.S. Watchdog: Large U.S. Banks Can No Longer Deny Funding To Oil & Gas

Days before the end of the current Administration, a U.S. banking industry regulator finalized a rule under which large American banks cannot deny lending money to oil and gas companies.

The Office of the Comptroller of the Currency (OCC) released on Thursday its finalized rule to ensure the so-called fair access to banking services, under which “banks should conduct risk assessment of individual customers, rather than make broad-based decisions affecting whole categories or classes of customers, when provisioning access to services, capital, and credit.”

Banks have grown increasingly aware of the reputational consequences of providing lending to oil and gas projects in sensitive areas such as the Arctic, for example. In the United States, Goldman Sachs said in December 2019 that it would decline to finance new Arctic oil exploration and production and new thermal coal mine development or strip mining. Wells Fargo, JPMorgan, and Deutsche Bank have also said they would stop financing new oil and gas projects in the Arctic.  

The rule, expected to take effect on April 1, 2021, is set to apply to the largest banks with more than $100 billion in assets.  

The largest U.S. banks, however, have criticized the rule during the comment period that ended last week, saying that the new rule “would also appear to prohibit banks from using subjective judgment and qualitative considerations, including reputational risk, in deciding whether to provide a financial service, which is entirely inconsistent with how the OCC has historically expected banks to make risk management decisions.”

Related: Saudi Arabia Starts New Bull Run In Middle East Oil

Commenting on the finalized rule, Greg Baer, president and CEO of the Bank Policy Institute (BPI), a research and advocacy group for big U.S. banks, said on Thursday:

“The rule lacks both logic and legal basis, it ignores basic facts about how banking works, and it will undermine the safety and soundness of the banks to which it applies.”  

The incoming Biden Administration has several ways to stop the rule from taking effect, The Hill comments, including by a Congress review action or a delay in enforcing the rule from the new acting comptroller that President-elect Joe Biden will likely name next week while his nominee for the role is confirmed by the Senate.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Paul Smith on January 16 2021 said:
    What happened to the free market? Suddenly the oil industry needs big government to force the banks who are private concerns to finance the oil industry? If that isn't socialism what is?

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News