Banks Say Fair Access Lending Rule Would Alter Business Models

A Trump-appointed banking regulator’s proposal to bar banks from refusing to lend to oil and gas companies, gun makers, and other politically sensitive industries could lead to unsound and unsafe lending practices, a leading Wall Street trade group said.

The Office of the Comptroller of the Currency’s so-called “fair access” proposal would force some banks to alter their business models to provide credit and other services to industries where they lack “requisite expertise,” the Bank Policy Institute said in a letter Monday.

The Nov. 20 proposed rule—which acting OCC Director Brian Brooks issued without the support of other federal ...