Several major US banks have exited the Net-Zero Banking Alliance (NZBA) citing political backlash, legal risks, and expanding obligations under the alliance, followed by several Canadian and Japanese banks. These departures raise serious concerns about the credibility of the Glasgow Financial Alliance for Net Zero (GFANZ) and the broader role of voluntary commitments in private finance for achieving global climate goals. As the NZBA weakens and cuts down its ambitions, the future of climate-aligned banking may be contingent upon regulatory reform rather than voluntary commitments.