Citizens Bank Ends Lending to Two Private Prison Companies

Citizens Bank will end its lending relationships with CoreCivic and The GEO Group after the companies’ financial requirements declined. The bank stated the decision followed federal plans to purchase several facilities operated by CoreCivic and ongoing talks with The GEO Group. Officials have said the government intends to acquire additional sites run by both companies.

Group have operated immigration detention centers under contracts with federal agencies. Citizens Bank previously provided banking services to both firms. City councils in Montclair and Jersey City voted to withdraw municipal funds from Citizens Bank unless it severed ties with the companies. Advocacy groups had also pressed the bank to end the relationships.

Bank’s stated rationale Citizens Bank said the action reflected changed commercial circumstances and did not signal any shift in its assessment of the companies’ operations. The bank noted that all institutions must weigh regulatory and contractual rules when deciding which clients to serve.

Debanking practices have drawn scrutiny from federal regulators during the current administration, with potential penalties for banks found to have improperly restricted services.