AFSA opposes the recently introduced Close the Shadow Banking Loophole Act, which targets the ability of industrial loan companies (ILCs) to exist in the financial service marketplace. Led by Senate Banking Committee Chairman Sherrod Brown (D-OH), this Democratic anti-ILC bill will hinder financial innovation that provides unique solutions for many niche types of businesses in the banking system, including major automobile manufacturers and other diversified companies.
Industrial banks are heavily regulated, subject to the same banking laws, and regulated in the same manner as other depository institutions. They are supervised and examined by the states that charter them (Utah, California, Colorado, Nevada, Hawaii, Indiana, or Minnesota) and by the Federal Deposit Insurance Corporation (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. In addition, these FDIC-insured industrial banks have consistently been the best-capitalized and financially strongest group of banks insured by the FDIC.
The “Close the Shadow Banking Loophole Act” is a companion bill of legislation introduced in the House of Representatives H.R. 5912 – the Close the ILC Loophole Act. Both bills seek to eliminate decades-long ILC charters and unnecessarily prohibit future businesses from seeking an ILC charter. As the House Financial Service Committee debated the bill, a significant portion of the American auto industry, including vehicle finance companies, voiced their opposition in a letter.
The AFSA team will update you if the Close the Shadow Banking Loophole Act moves through the legislative process.
AFSA opposes the recently introduced Close the Shadow Banking Loophole Act, which targets the ability of industrial loan companies (ILCs) to exist in the financial service marketplace. Led by Senate Banking Committee Chairman Sherrod … Read the rest
Join us on November 17th at 2:00 p.m. for Disrupting The Status Quo: Learn How AI and Machine Learning are Creating Unprecedented Efficiencies in Auto Finance, presented by Wolters Kluwer.
One of the biggest challenges holding back end-to-end… Read the rest
Join us on November 17th at 2:00 p.m. for Disrupting The Status Quo: Learn How AI and Machine Learning are Creating Unprecedented Efficiencies in Auto Finance, presented by Wolters Kluwer.
One of the biggest challenges holding back end-to-end… Read the rest
AFSA’s Vehicle Finance Conference & Expo, the premier industry event for the vehicle finance industry, is an opportunity to gain industry insights and trends on compliance and regulatory activities, best practices from the … Read the rest
Join us on October 20th at 2:00 p.m. for Best Practices in Automated Credit Dispute Handling, sponsored by FTI Consulting
Over the past two years, there has been a significant increase in credit industry-wide. At the same time, disputes … Read the rest
The AFSA Fixed Income Investor Summit returns virtually for 2022.
Join finance industry executives, debt issuers, and investors virtually on Wednesday, December 14 for a fast-paced, single-day conference featuring industry updates,… Read the rest
Join Danielle DiMartino Booth, CEO & Chief Strategist for Quill Intelligence LLC, and Steve Riccuitto, Chief Economist of Mizuho Securities USA at the 2022 AFSA Annual Meeting for a lively examination of the U.S. and global economies,… Read the rest
Join us on August 17, 2022 at 2:00 p.m. ET for The CFPB Flexes its Muscle in the Fair Lending and Anti-Discrimination Space: Thoughts on How to Reduce Your Risk.
Earlier this year, the Consumer Financial Protection Bureau (CFPB) substantially… Read the rest
AFSA’s state government affairs team this week sent a letter to the California Senate raising concerns with SB 1311. Among other provisions, the bill would void the security interest in a vehicle financed by a covered service member if the … Read the rest
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… Read the rest
