Industrial Banks Respond to Recent Seminar
“We agree with the BPI that examining Industrial Banks in today’s environment is important and necessary. Failing to include anyone on the panel representing Industrial Banks makes me wonder if the actual purpose of the panel was to obfuscate the facts about Industrial Banks rather than educate interested stakeholders,” stated Frank Pignanelli, Executive Director, The National Association of Industrial Bankers. (“Industrial Banks” is the most accurate label for these institutions.)
Pignanelli was responding to a seminar regarding Industrial Loan Companies (ILCs) conducted by the Bank Policy Institute (BPI) on Friday, March 12. According to the BPI release, the purpose of the event was to “encourage discussion on the role of ILCs in the modern financial system and to explain the latest and regulatory environment governing ILCs”.
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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