The FDIC's Proposed Rule for Industrial Banks and Industrial Loan Companies: Five Things to Know

The FDIC's Proposed Rule for Industrial Banks and Industrial Loan Companies: Five Things to Know

March 19, 2020, Covington Alert

On March 17, 2020, the Federal Deposit Insurance Corporation issued a notice of proposed rulemaking that would codify the FDIC’s existing supervisory processes and policies that apply to industrial banks and industrial loan companies (collectively, “ILCs”) and their parent companies. The FDIC issued the Proposal to formalize its ILC supervisory framework and to provide transparency about the framework to ILC applicants. The FDIC announced on the following day that its Board of Directors had approved applications for deposit insurance coverage for two de novo ILCs, Square Financial Services, Inc. and Nelnet Bank.