FDIC Starts Providing Clarity on ILC Charters

The FDIC proposed new standards for companies seeking an ILC charter including parent companies agreeing to examinations, specialized capital and liquidity requirements and more; “The outcome of the vote on these applications should not be interpreted as an endorsement, or a criticism, of the industrial bank charter, but rather the fulfillment of a statutory responsibility to consider such applications,” FDIC Chair Jelena McWilliams said to American banker; the new standards will help to provide companies like Square and Rakuten some clarity on a pathway forward; “This proposal would ensure that parent companies serve as a source of strength for their industrial bank subsidiaries,” said McWilliams. “By codifying these requirements, the proposal would enhance transparency and provide important protections for the Deposit Insurance Fund.” American Banker