Sen. John Kennedy (R-La.) wrote to FDIC Chairman Jelena McWilliams urging her not to allow industrial loan companies to exploit a loophole in the Bank Holding Company Act during the coronavirus pandemic.

“I have concerns that we are approaching an inflection point that compromises this nation's longstanding policy of not mixing commerce and banking, Kennedy wrote. “In particular, I am deeply concerned about companies the size of Rakuten, Google, or Facebook offering banking services without proper supervision. The ILC loophole was never meant to address these types of firms.”

Last month ICBA called on the FDIC to deny Rakuten Bank America’s resubmitted ILC application and urged the agency to strengthen its proposal to enhance oversight of ILC parent companies.

Community bankers can use ICBA's Be Heard grassroots action center to urge their senators to co-sponsor ICBA-advocated legislation to close the ILC loophole.