ICBA’s new white paper on industrial loan companies takes a deep dive into the long history of this obscure charter type and its transformation in recent years, ICBA President and CEO Rebeca Romero Rainey writes in a new blog post.
On Main Street Matters, Romero Rainey wrote that the ILC has morphed into the fashionable charter of choice for financial firms seeking to benefit from the federal safety net while avoiding legal restrictions and company oversight under the Bank Holding Company Act.
“Not only does this create an unlevel playing field relative to community banks and other financial institutions that must meet holding company standards, but it also leaves a dangerous gap in safety and soundness oversight while violating the longstanding U.S. separation of banking and commerce activities,” she wrote.
Read the Blog Post
Access ICBA’s White Paper