Bank of America has revealed that it will quit offering loans to clients who are in the business of manufacturing military-style weapons which are sold for civilian use. The lender becomes one of the latest financial institutions in the United States to cut ties with gun manufacturers after the mass shooting incident at a high school in Florida earlier in the year.
Some of the gun manufacturers that Bank of America counts as clients include Sturm Ruger, Remington and Vista Outdoor. Speaking to Bloomberg, the vice chairman of Bank of America, Anne Finucane, disclosed that the financial institution had already informed the gun-manufacturer clients that it would not continue underwriting or financing military-style firearms.
“These are clients we have enjoyed a relationship with. There are those I think will reduce their portfolios and we’ll work with them and others that will choose to do something else,” said Finucane.
Florida high school mass shooting
America’s second-biggest bank by assets began breaking ties with manufacturers of military-style weapons for civilians following the Florida high school mass shooting incident in which 17 people lost their lives. Following the massacre there has been a renewed push across the country for stricter gun control measures.
Other financial institutions that have taken similar measures include Citigroup and Amalgamated Bank. Last month the former placed restrictions that were related to guns and this included putting in place measures to ensure that firearms were not sold to customers who were below the age of 21 and those who had failed background checks. Citigroup also revealed that it would bar its client from selling bump stocks which enable rapid firing as well as high-capacity ammunition magazines. Amalgamated Bank on the other hand announced that it would not be investing its assets in firms that make or distribute ammunition, weaponry or firearms.
Digital Mortgage Experience
The announcement by the No. 2 lender in the U.S. by assets comes in the wake of the financial institution launching a digital mortgage service allowing its clients to make an application for mortgages on the website or mobile app of the bank. The move will see customers receive conditional approval within 24 hours. Bank of America started developing Digital Mortgage Experience last year.
Currently the number of digital clients that Bank of America has is 35 million of which over 24 million are active mobile users. Two years ago the lender set a target of increasing the spending on mobile by threefold.