Sen. Sherrod Brown (D-Ohio), chair of the Senate Committee on Banking, Housing, and Urban Affairs, sent a letter to Acting Comptroller Michael Hsu asking the Office of the Comptroller of the Currency (OCC) to apply greater scrutiny to banks that are closing branches in low- and moderate-income (LMI) areas.
“A bank’s presence in a community provides access to traditional financial services and supports economic development,” Brown wrote. “Yet, we have seen an alarming trend of bank branches closing in already underserved communities.”
Brown urged the OCC to hold public meetings in response to community requests to evaluate the closure of bank branches. Under federal law, banks are obligated to provide notice to the OCC and the public when it plans to close a branch. The bank and the OCC are also obligated to hear from the public when there is concern expressed about the decision to close a branch in an LMI area.
“I urge the OCC to hold public meetings in response to community requests to evaluate the closure of a branch,” Brown wrote. “I also expect the OCC and other banking regulators to ensure that banks are meeting all requirements before a branch is permitted to close.”
Consolidations and concentration within the banking industry, according to Brown, play a key role in the closure of many branches in LMI areas. In his letter, he urges Hsu and the OCC to support “real changes” to the bank merger process “to ensure that all communities have access to banking services.”