Citizens Bank announced its decision to cease financial dealings with two private prison companies. These companies, CoreCivic and The GEO Group, have been significant contractors for U.S. Immigration and Customs Enforcement under the Trump administration.

Both CoreCivic and The GEO Group managed various immigration detention and deportation centers. The decision by Citizens Bank followed substantial public pressure, notably from advocacy groups and left-leaning city governments. Two city councils in New Jersey, Montclair and Jersey City, had even voted to withdraw funds from Citizens Bank if it continued to partner with these private prison operators.

The De-ICE Citizens Bank Coalition hailed the decision as a victory against the financing of ICE-related detention activities. Despite public pressures, Citizens Bank maintained that their decision stemmed from business factors rather than political influences. The bank cited changes in the financial needs of the companies due to the federal government’s plan to potentially purchase several facilities run by CoreCivic and ongoing discussions with The GEO Group.

“This is a business decision based on changed commercial circumstances and does not reflect any change in our view regarding these companies’ business models or operations,” Citizens Bank stated.

Debanking, the act of banks severing ties with certain businesses or individuals, has become a contentious topic during Trump’s second term. Bank regulators have been examining these practices and may impose penalties on banks that engage in debanking. Citizens Bank emphasized that all financial institutions must consider regulatory and contractual frameworks when deciding their client relationships.