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.
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
Washington, D.C. may be operating under one political party at both ends of Pennsylvania Avenue, but that doesn’t mean only one side of public policy should be discussed.
Unfortunately, that’s exactly what happened on March 12, when the Bank… Read the rest
For the first time in the Fair Debt Collection Practices Act’s (FDCPA) 40-plus-year history, a regulatory agency has issued rules under the statute.
The new rulemaking, issued by the Consumer Financial Protection Bureau (CFPB), … Read the rest
The Consumer Financial Protection Bureau (CFPB) has issued two notices of proposed rulemaking (NPRMs) to amend the Ability to Repay/Qualified Mortgage (ATR-QM) Rule. The first NPRM would extend the sunset date for a temporary category … Read the rest
AFSA’s federal government affairs team continued to be highly effective in advocating for the protection of consumer credit and choice in 2019. Below are just a few of the 2019 federal successes.
Rate Caps: Prevented legislation extending… Read the rest
The chief executives of five auto finance lenders, representing captives and major banks, will participate in a panel discussion next week at AFSA’s annual Vehicle Finance Conference, capping off three days of deep dives and 30,000-foot… Read the rest
As 2018 continues to tick down toward the new year, we edge closer to the premier event for the vehicle financing community. The 2019 AFSA Vehicle Finance Conference & Expo will be held from January 22-24, 2019 at the Hilton Union Square… Read the rest
