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
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… Read the rest
A bipartisan group of Representatives recently led by Rep. Blake Moore (R-UT) sent a letter to FDIC Chair Martin Gruenberg, urging the withdrawal of the proposed rule governing parent companies of industrial banks and industrial loan… Read the rest
Today, AFSA wrote a letter to the Senate Banking Committee in opposition to the recently introduced the Close the Shadow Banking Loophole Act, which targets the ability of Industrial Loan Companies (ILCs) charted entities to exist in the … Read the rest
A bipartisan group of Senators sent a letter today expressing their support for industrial loan company (ILC) charters to Martin J. Gruenberg, acting chair of the Federal Deposit Insurance Corporation (FDIC). Led by Senators Mitt Romney… Read the rest
Last week, AFSA emphasized to House Financial Services Committee members that ILCs are highly regulated and well-capitalized. AFSA’s testimony was entered into the record by Chairman Ed Perlmutter (D-CO)as part of a subcommittee hearing… Read the rest
This week, the FDIC finalized a rule to require certain conditions and commitments for each deposit insurance application approval from an industrial bank or industrial loan company (ILC) whose parent company is not subject to consolidated… Read the rest
The Washington Post recently made waves when its owner announced that the paper’s opinion section would focus on issues related to personal liberties and the free market. Which raises the question: why a full-throated – and inaccurate – defense
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