Washington, D.C (Oct. 16, 2017)—Independent Community Bankers of America® (ICBA) President and CEO Camden R. Fine issued this statement on SoFi Bank withdrawing its deposit-insurance application with the Federal Deposit Insurance Corp.
“ICBA opposed SoFi Bank’s application for deposit insurance for safety and soundness reasons and to preserve the nation’s longstanding separation of banking and commerce. SoFi and other fintech firms, such as Square Financial Services Inc., that wish to own a bank should be subject to the same restrictions and supervision that apply to any other bank holding company. They should not be permitted to use the industrial loan corporation loophole to avoid legal restrictions.
“To truly address the ILC problem, ICBA continues urging the FDIC to impose an immediate two-year moratorium on ILC deposit-insurance applications and Congress to close the ILC loophole for good. The loophole, which allows ILCs and their parent companies to avoid Bank Holding Company Act regulations and consolidated supervision, threatens the financial system and creates an uneven playing field between community banks and other lenders.”
The Independent Community Bankers of America®, the nation’s voice for more than 5,700 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit ICBA’s website at www.icba.org.