Consumers Need Access to More Financial Service Choices, Not Fewer
AFSA President and CEO Bill Himpler weighed in on the important role Industrial Loan Companies (ILCs a.k.a Industrial Banks) can play for consumers. As the House Financial Services Committee considers legislation that would limit the growth in ILCs, it’s important that policymakers focus on the facts and longstanding history of ILCs, rather than the latest talking points from K Street.
For example, this study that found that “[ILCs] perform very favorably compared to all other FDIC-insured institutions (5,865 in all) in terms of such performance indicators as return on assets, return on equity, capital-to-asset ratios, the soundness of their loan portfolios, and the efficiency of their operations. In fact, as this report will show, more than half of the active ILCs rank in the top 10% of all FDIC-insured institutions for return on assets; and nearly half ranked in the top 10% in terms of capital-asset ratios.”
The importance of ILCs to consumers was further underscored by a joint trade letter from virtually every player in the auto finance industry. You can read it here.
June 21st, 2022 by Dan Bucherer