ICBA to FDIC: Hold off on ILC applications

Mar 16, 2020

ICBA and other organizations called on the FDIC to refrain from approving industrial loan company deposit insurance applications until it has finalized a proposed rule affecting ILC parent companies.

 The FDIC board of directors is scheduled to meet tomorrow to vote on issuing the proposed rule for public comment. The groups also urged the agency to hold public hearings on each pending ILC deposit insurance application.

 House Financial Services Committee Chairman Maxine Waters (D-Calif.) on Friday separately urged the FDIC to hold off until it has received and considered feedback on the forthcoming proposal.

ICBA continues to lead the opposition to mixing banking and commerce through exploitation of the ILC loophole and strongly supports legislation that would close it. In a white paper issued last year, ICBA details the transformation of the ILC charter.