Canada, U.S. Banking Regulators Converge on Need for Governance Discipline
Recent scrutiny of debanking practices highlights a deeper governance question for financial institutions operating across borders: how to remain anchored to the core purpose of banking amid shifting supervisory expectations. Drawing on the U.S. Office of the Comptroller of the Currency’s preliminary findings and Canada’s evolving integrity and security framework, this article shows how regulators are converging on a shared principle: the banking charter is a public trust. While U.S. supervisors are pushing back against values‑based exclusions that restrict access to lawful customers, Canadian supervisors are emphasizing the need to protect institutions from external threats that undermine sound decision‑making. For boards and senior management, the key takeaway is governance discipline: access decisions must be grounded in law, safety, and soundness, while guarding against both overreach and external capture.