Rakuten withdraws ILC application

Mar 24, 2020

Rakuten said it has withdrawn its ICBA-opposed application to establish an industrial loan company but will refile with the FDIC in the coming months. ICBA has repeatedly expressed its opposition to the global e-commerce giant's application while advocating the closure of the ILC loophole.

The FDIC last week issued a proposed rule codifying agency rules on ILC parent companies and approved the ILC deposit insurance applications of Square Financial Services Inc. and Nelnet Bank—the first applications to be approved since 2006.

ICBA will continue to lead the opposition to mixing banking and commerce, as detailed in a white paper issued last year, including by supporting legislation to close the ILC loophole.