Following national trend, Tennessee wants to prevent banks from closing accounts due to political opinions or religious beliefs

A Tennessee bill advancing through the House would prevent financial institutions from discriminating against people and businesses for their religious beliefs, political opinions, speech or affiliations.

The Alliance Defending Freedom, a conservative Christian advocacy group, represents a Memphis-based ministry that had its account closed — allegedly without reason — by Bank of America.

Matt Sharp with the advocacy group says the process, called “de-banking,” is becoming more common for those voicing their opinion in the public eye.

“Groups like Ruth Institute, Timothy Two and many others that all had this same pattern and practice happen to them,” said Sharp. “And it’s happening because these large financial institutions are adopting policies that specifically say that they can cancel someone because of reputational risk or that the bank believes they promote hate.”

During a committee hearing, banks said it’s already illegal at the federal level for them to discriminate based on religious beliefs. Rep. Jason Zachary, R-Knoxville, argues the law only applies to credit cards and not bank accounts.

Here in Nashville, Councilmember Zulfat Suara recently had her Regions Bank account closed with no explanation. She believes her account was closed due to profiling. Suara is Muslim and has been posting on social media calling for a ceasefire in Gaza.

The bill follows a national trend. In May 2023, 17 attorneys general from Republican-led states sent a letter accusing JPMorgan Chase of political and religious discrimination.