AFSA Urges FDIC ILC Policy Withdrawal
This week, AFSA along with other financial associations, sent a letter urging the FDIC to withdraw its proposed rule that will negatively impact current ILC institutions and discourage future applications.
In July 2024 the FDIC announced it was amending existing regulations governing parent companies of industrial banks and ILCs. This proposal will obstruct the ability of these financial institutions to provide capital for small businesses and consumers, including helping to fill financial gaps in underserved communities. AFSA submitted comments opposing the FDIC’s unnecessary and unjustified proposal.
To further highlight this regulatory overreach, a group of 19 bipartisan Members of Congress urged the FDIC to withdraw this proposal rule last year. The bipartisan group stated that the proposal would “create significant uncertainty for existing industrial banks and may impede their ability to offer critical products and services to consumers.”
The letter was signed by AFSA, Alliance for Automotive Innovation, National Association of Industrial Bankers, National Automobile Dealers Association, Nevada Bankers Association, and Utah Bankers Association.
March 27th, 2025
