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#2268465 - 03/30/22 09:30 PM List of Businesses to Not Bank
Curious in Kansas Offline
Member
Joined: Oct 2015
Posts: 71
I'm wondering if anyone has a list of business types that they're unwilling to bank and if they'd share those industry types with me. I know it depends upon each bank's risk appetite; however, we're just working to create this list.

I'm thinking so far (as examples)...

Strip Clubs
Adult Stores
Marijuana Related Business
CBD Oil
Third Party Payment Processor
MSB

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#2268470 - 03/30/22 11:39 PM Re: List of Businesses to Not Bank Curious in Kansas
ACBbank Online
Power Poster
ACBbank
Joined: Jul 2006
Posts: 4,241
New York City
We don't have a list of nature. Interestingly enough it was our regulators who said we should look at each opportunity and assess whether we want to bank them or not.
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#2268472 - 03/31/22 11:38 AM Re: List of Businesses to Not Bank Curious in Kansas
SmallBankBSA Offline
100 Club
Joined: May 2018
Posts: 192
We have certain business types listed in our policy that the bank chooses not to offer services to because of our risk appetite. However with that said, if an opportunity arose we would look at it and assess the risk on an individual basis like ACBbank stated. Which we recently have.

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#2268477 - 03/31/22 01:29 PM Re: List of Businesses to Not Bank Curious in Kansas
SteveDave Offline
Member
Joined: Aug 2021
Posts: 94
I was at an institution that used hard stops for customers based on business type. The only stop was Marijuna based businesses as we did not have the assets to do the work necessary to stay compliant. I like what ACBbanks regulators said. Look at each customer individually and assess it from there.

When they took their first MSB it was a shift in business nature but it ended up doing great things for the institution.

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#2268478 - 03/31/22 01:30 PM Re: List of Businesses to Not Bank Curious in Kansas
SteveDave Offline
Member
Joined: Aug 2021
Posts: 94
I have not seen adult stores on a no banking list before.

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#2268484 - 03/31/22 02:28 PM Re: List of Businesses to Not Bank Curious in Kansas
HappyGilmore Offline
10K Club
Joined: Jun 2004
Posts: 19,607
Pulling people out of the ditc...
Originally Posted by Curious in Kansas
I'm wondering if anyone has a list of business types that they're unwilling to bank and if they'd share those industry types with me. I know it depends upon each bank's risk appetite; however, we're just working to create this list.

I'm thinking so far (as examples)...

Strip Clubs
Adult Stores
Marijuana Related Business
CBD Oil
Third Party Payment Processor
MSB

not sure what type of business my bank may choose to bank or not has any bearing on what your bank chooses to bank or not. For ones that we deem to be not the best ones to bank, we have a high earning threshold that they most produce $X annually before we will agree to bank them, and that number is 7 figures.

as others have stated, this is solely at your banks exec mgt or board level to determine
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