Yesterday, a House Financial Services Subcommittee held a hearing on how bank consolidation and the emergence of nonbank financial technology companies (fintechs) are reshaping the banking system. In recent years, fintechs have gained a larger share of the consumer, mortgage, and small business lending market. Some fintechs have even pursued bank charters, including Industrial Loan Company (ILC) charters, to enhance their ability to offer financial services.
Some advocates have previously raised concerns that ILC-chartered institutions are not sufficiently regulated since they are not subject to supervision by the Federal Reserve under the Bank Holding Company Act (BHCA). In advance of the hearing, AFSA wrote a letter to Representatives Ed Perlmutter (D-CO) and Blaine Luetkemeyer (R-MO), the senior Democratic and Republican members on the Subcommittee on Consumer Protection and Financial Institutions, clarifying that industrial banks are indeed subject to the same banking laws and are regulated in the same manner as other depository institutions.
“They [industrial banks] are supervised and examined both by the states that charter them and by the FDIC. They are subject to the same safety and soundness, consumer protection, deposit insurance, Community Reinvestment Act, and other requirements as other FDIC-insured depository institutions,” AFSA wrote.
During the past five decades, industrial banks have compiled among the best records of capitalization and profitability of any group of banks in the nation, and they represent a sector of the financial services industry that should be encouraged to grow.
House Committee Holds Hearing on the Future of Banking
Oct 01, 2021
Yesterday, a House Financial Services Subcommittee held a hearing on how bank consolidation and the emergence of nonbank financial technology companies (fintechs) are reshaping the banking system. In recent years, fintechs have gained… Read the rest
RELEASE | AFSA Welcomes Chopra Confirmation
Sep 30, 2021
Today the U.S. Senate confirmed Rohit Chopra as Director of the Consumer Financial Protection Bureau (CFPB). The following statement should be attributed to Bill Himpler, President and CEO of the American Financial Services Association… Read the rest
AFSA Files Amicus Brief in Arbitration Case
Sep 29, 2021
The American Financial Services Association (AFSA) filed an amicus brief before the Missouri Supreme Court in a case involving the enforceability of arbitration provisions in loan agreements. In Bridgecrest Acceptance Corp. V. Kelly … Read the rest
House Passes National Defense Authorization Act
Sep 27, 2021
Last week, the U.S. House of Representatives passed the FY2022 National Defense Authorization Act (NDAA), which included three amendments on which AFSA commented in a previous letter to the House Rules Committee. AFSA supported … Read the rest
The Customer Experience Journey: Is Your Company Keeping Up With The Times?
Sep 24, 2021
AFSA Comments on Proposed Rules from California DFPI
Sep 21, 2021
On September 17, AFSA submitted comments in response to proposed rules from the California Department of Financial Protection and Innovation (DFPI). The proposed rules set forth requirements for licensees to establish a process for receiving… Read the rest
AFSA, Joint Trades Comment on Tax Provisions in Reconciliation Package
Sep 17, 2021
Today, AFSA and about thirty other financial services trades sent a letter to the House Speaker Pelosi and Minority Leader McCarthy in advance of their consideration of a tax provision in the reconciliation package. The provision, which … Read the rest
Remarks from the FDIC You Can Bank On
Sep 16, 2021
AFSA is pleased to announce that Jelena McWilliams is confirmed as a featured speaker for AFSA’s Annual Meeting in Washington, D.C., from October 24 through October 27.
Ms. McWilliams was sworn in as the 21st Chairman of the FDIC on June 5, 2018.… Read the rest
Precision Decision: Using AI For Replicable 24/7 Lending
Sep 15, 2021
Consumers have been trained by the big tech companies to expect instant 24/7 everything, including loan approvals. AI-driven lending, by using more data and smarter math, delivers consistent and fast credit decisions even when the human… Read the rest
Cannon Confirmed: Get Ready to Be Blown Away!
Sep 14, 2021
AFSA is proud to confirm Carl M. Cannon, the dean of Washington political journalists, as a keynote speaker at its Annual Meeting in Washington, D.C. Cannon will share his almost 40 years of political insights and experiences with AFSA attendees,… Read the rest