The FDIC unanimously voted today (July 15) to withdraw its Parent Companies of Industrial Banks and Industrial Loan Companies (ILC) proposed rule issued in August 2024. As drafted, the proposed rule discouraged future applications and targeted many existing ILCs that provide an essential source of capital for small businesses and consumers, including helping to fill financial gaps in underserved communities.
In March AFSA, with other financial associations, sent a letter urging the FDIC to withdraw its proposed rule because it would negatively affect current ILC institutions and discourage future applications. A group of 19 bipartisan Members of Congress also urged the FDIC to withdraw its proposal, stating that it would “create significant uncertainty for existing industrial banks and may impede their ability to offer critical products and services to consumers.”
The FDIC also voted separately to solicit information and comments from interested parties on how the FDIC reviews filings submitted by industrial banks.
AFSA appreciates the FDIC’s decision to withdraw its proposed rule and looks forward to providing the FDIC with information on the unique role that ILCs successfully play in helping consumers and the communities they serve.
The FDIC unanimously voted today (July 15) to withdraw its Parent Companies of Industrial Banks and Industrial Loan Companies (ILC) proposed rule issued in August 2024. As drafted, the proposed rule discouraged future applications … Read the rest
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In today’s competitive lending environment, standing out locally is more critical than ever. While Fintechs leverage speed and scale, traditional and nonbank lenders have a powerful asset they
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