National Association of Industrial Bankers

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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.)

UCFS Brokered Deposits Report Released

James R. Barth and Yanfei Sun of Auburn University conducted a study for the Utah Center for Financial Services (UCFS) examine brokered deposits in the context of their origin, regulatory history, use, and performance.

FDIC finishes long-awaited rules on brokered funds, ILCs

Banks and some of their deposit-gathering businesses won additional regulatory relief when the Federal Deposit Insurance Corp. finalized a new framework for classifying brokered deposits enabling a broader set of companies to escape restrictions.

New Senate Banking chief sets dramatic change of course

Sen. Sherrod Brown, D-Ohio, has made it clear that banking policy will not be the sole area of focus for the committee that he will chair in the new Congress.

Politico PRO Q&A: FDIC Chairman Jelena McWilliams

FDIC Chairman Jelena McWilliams is overseeing the banking system in the middle of an economic crisis, while working to adapt to new technology and grappling with evolving risks from climate change.

FDIC chair hopes regulators will ‘come together’ on CRA reform: Report

The head of the Federal Deposit Insurance Corp. became the second top regulator in two weeks to voice support for an interagency framework to reform the Community Reinvestment Act.

Banner year for de novos

Groups hoping to open new banks hit their stride in 2018.

Through Dec. 13, the Federal Deposit Insurance Corp. had approved 14 bank applications, with seven more pending. In comparison, the agency signed off on 10 total charters during the prior two years.

Jelena McWilliams, the new FDIC chairman, has signaled that the agency will be more supportive of de novo banks. The FDIC, for instance, recently announced that it is seeking public comment to improve the application process.