Banking
De-risking
De-risking is when a financial institution closes or refuses accounts for an entire category of customer — a country, industry or business model — rather than assessing each individually. It is a compliance-cost decision, not a judgement about a specific customer's conduct.
In plain terms: A bank dropping a whole type of customer because the category is too much trouble.
Why it matters
Why an account can close despite flawless conduct, and why the institution often cannot give a satisfying reason. The only practical defence is not depending on one account: open a second once revenue is steady.
Read the full guideUS business banking