“Close the Shadow Banking Loophole Act” Directly Targets Industrial Loan Companies (ILCs)
Today, Senator Sherrod Brown again introduced the ‘‘Close the Shadow Banking Loophole Act.’’ This legislation directly targets industrial loan companies (ILCs).
In response, Frank Pignanelli, executive director of the National Association of Industrial Bankers (NAIB), stated the following:
“Industrial loan companies are an important source of strength, stability, and financing in the modern, diverse American financial services landscape. Strictly regulated by both the state and the Federal Deposit Insurance Corporation (FDIC), ILCs are safe and sound providers of financial services to consumers and small businesses. In fact, ILCs are consistently the safest and strongest financial institutions in the country.
Unfortunately, Senator Brown's perennial bill is a proverbial solution in search of a problem. We urge the Senate to focus on remediating regulatory failures that led to the crisis at SVB and Silvergate and other actual threats to our financial system.”