House Subcommittee reaffirms the Strengths and Regulatory Oversight of Industrial Banks
This week the US House Financial Services Committee Subcommittee on Consumer Protection and Financial Institutions conducted a hearing “The Future of Banking: How Consolidation, Nonbank Competition, and Technology are Reshaping the Banking System”. Several witnesses provided verbal and written testimony regarding their views on serving consumers, community banks, new advances in technology for financial services, and consumer protection.
Respected Academics Reaffirm Safety Of Industrial Banks
The Utah Center for Financial Services at the University of Utah just released a new comprehensive study “Source of Strength and Consolidated Supervision: A Comparative Assessment of Industrial Banks and Commercial Banks”, by Dr. James Barth and Dr. Yanfei Sun.”
“This new study is impressive. The conclusions underscore the judgement of accomplished scholars – industrial banks are the safest and soundest financial institutions in the country. The authors also document that the supervision provided by the FDIC and state regulators is equal to that of any other bank,” stated Frank Pignanelli, Executive Director, National Association of Industrial Bankers.
Congratulations to America’s New Industrial Banks
Congratulations to Square and Nelnet for commencing operations of their new Industrial Loan Corporations (ILC) on March 1, 2021 and November 2, 2020, respectively. These FDIC-insured industrial banks operating in Utah are the first to open in the state since 2008.
“Square and Nelnet are great additions to the U.S. banking sector. We congratulate them for succeeding through the rigorous federal and state application process,” said Frank Pignanelli, Executive Director of the National Association of Industrial Bankers.
On March 18, 2020, the FDIC approved the applications submitted by Square Financial Services and Nelnet Bank for deposit insurance as new Industrial Loan Corporation (ILC) charters. Simultaneously, the Utah Department of Financial Institutions approved the industrial bank charter applications. (ILCs are also referred to as industrial banks.)
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THE GOLDEN APPLE
Gray Robinson’s weekly report on public policy matters. An indispensable way to keep up with what’s going on in Washington.